tl;dr
Uniswap Labs has formally requested the U.S. Securities and Exchange Commission (SEC) to reconsider proposed rule changes to the Securities Exchange Act of 1934, arguing that the changes would exceed the SEC's authority over DeFi platforms and are likely to be invalidated by the Supreme Court. Unisw...
Uniswap Labs Challenges SEC's Proposed DeFi Rule Uniswap Labs Challenges SEC's Proposed DeFi Rule
Uniswap Labs has formally requested the U.S. Securities and Exchange Commission (SEC) to reconsider proposed rule changes to the Securities Exchange Act of 1934, arguing that the changes would exceed the SEC's authority over DeFi platforms and are likely to be invalidated by the Supreme Court.
According to Uniswap Labs, the recent Supreme Court decision has altered the legal framework, removing the deference previously given to federal agencies, and claims that the SEC's interpretation of the term "exchange" is unsupported.
Uniswap Labs has been issued a Wells Notice by the SEC, indicating potential legal action, and is calling for the reopening of the comment period on the proposed amendments. The company argues that the SEC's amendments would stifle innovation, create legal ambiguities, and negatively impact the DeFi industry.
Uniswap Labs is committed to challenging the SEC's actions and is prepared to pursue legal action up to the Supreme Court.
Uniswap Labs asserts that the definition in the statute does not capture DeFi protocols and that the SEC’s amendments will most probably be dismissed by courts.
The company has, however, defended itself stating that its protocol does not qualify to be termed as an exchange and rather it is a passive technology. Uniswap Labs has urged the SEC to reconsider the proposed amendments and extend the comment period. They assert that the legal environment has changed significantly to require new participation of the public.
Uniswap Labs also argued that the proposed amendments would hamper innovation and lead to legal ambiguities, and negatively impact the DeFi industry responsible for trillions of dollars in transactions.
Uniswap Labs is willing to challenge the SEC’s actions and is ready to continue the legal battle all the way to the Supreme Court.