Uniswap Developers Fight Against SEC Regulatory Proposals
Developers of the leading decentralized crypto exchange (DEX) Uniswap have once again appealed to the U.S. Securities and Exchange Commission (SEC) to reject proposed amendments to the Securities Exchange Act of 1934. Uniswap believes that these proposed amendments would grant the SEC excessive regulatory power over the decentralized finance (DeFi) sector. The SEC initially proposed expanding the definition of exchanges to include DeFi platforms back in April 2023.
Uniswap’s developer company, Uniswap Labs, has consistently opposed this initiative and on July 9 presented a new argument in their objections. Developers referenced a recent Supreme Court decision on June 28 that overturned the Chevron doctrine, removing the requirement for courts to defer to federal agencies’ interpretations of unclear laws.
Representatives of Uniswap have voiced concerns that the proposed amendment is overly broad and lacks clear limits for the public. They fear this could lead to the SEC litigating each case related to crypto firms, resulting in legal inconsistencies and a lack of guidance.
Uniswap Labs argues that this could lead to an inefficient use of SEC resources and potential rejection of the new interpretation of the law by courts. They believe the proposed amendments are based on outdated legal norms and urge officials to either reject them or reconsider based on the recent Supreme Court ruling.
Uniswap founder Hayden Adams has expressed disappointment and readiness to fight against the SEC’s actions, stating, «Not surprised, but irritated and disappointed».
Despite operating without a centralized authority, Uniswap and other DeFi platforms are facing increasing regulatory scrutiny. The U.S. Department of the Treasury has indicated that regardless of decentralization, such services must comply with laws and be classified as financial institutions under the Bank Secrecy Act (BSA).
