In a significant development within the decentralized finance (DeFi) space, Hayden Adams, the founder of Uniswap, announced that the U.S. Securities and Exchange Commission (SEC) has dropped its long-standing allegations against Uniswap Labs. Originally, the SEC accused the firm of operating as an unregistered broker-dealer, exchange, and clearing agency, as well as issuing unregistered securities. Adams firmly stated that Uniswap Labs does not function as a broker-dealer, and emphasized that the Uniswap protocol operates independently of Labs.
The founder expressed relief at the cessation of these investigations, which have lasted over three years and caused significant financial and operational strain. He articulated concerns over the SEC’s lack of clear guidelines for regulatory compliance in the DeFi sector, labeling the previous inquiries as a form of selective enforcement that stifled innovation. Adams welcomed the shift in direction from the current SEC leadership, anticipating a collaborative effort with regulatory bodies to establish a practical framework for DeFi.