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The Uniswap token UNI plummeted 16% after the decentralized exchange said it received notice of a proposed lawsuit from the U.S. Securities and Exchange Commission (SEC).
The so-called <a href="https://en.wikipedia.org/wiki/Wells_notice" rel="noopener noreferrer nofollow">Wells notice</a> sent by the SEC shows it has completed an investigation and intends to bring an action against the exchange. No further details were provided, but Uniswap responded to the legal document in a <a href="https://blog.uniswap.org/fighting-for-defi" rel="noopener noreferrer nofollow">blog post</a>. 
“Taking into account the SEC’s ongoing lawsuits against Coinbase and others as well as their complete unwillingness to provide clarity or a path to registration to those operating lawfully within the U.S., we can only conclude that this is the latest political effort to target even the best actors building technology on blockchains,” it said. “We are confident that the products we offer are not just legal – they are transformative.”
It also argued that UNI is not a security and that Uniswap does not meet the U.S. legal definitions for being a securities exchange or broker.
UNI’s value dropped to its lowest level in six weeks within just the first hour after Uniswap revealed the SEC’s planned action. 
Traders continued to panic sell the crypto in the past 24 hours, with UNI <a href="https://coinmarketcap.com/currencies/uniswap/" rel="noopener noreferrer nofollow">trading</a> at $9.38 as of 2:50 a.m. EST after trading at around $11.21 prior to the announcement.<img decoding="async" src="https://public.bnbstatic.com/static/academy/uploads/0f9ad6e5486242c988d6ebec6274f9b3.png" alt="What Is Uniswap and How Does It Work? | Binance Academy">
<h2 id="span-style-font-weight-400-uniswap-team-ready-to-fight-the-sec-span">Uniswap Team “Ready To Fight” The SEC</h2>
“I’m not surprised,” said Uniswap founder Hayden Adams in an Apr. 10 X post. “Just annoyed, disappointed, and ready to fight.” 
He anticipates the legal battle to “take years,” while preparing for it to “go all the way to the Supreme Court.”
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 Today <a href="https://twitter.com/Uniswap?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@Uniswap</a> Labs received a Wells notice from the SEC.
 I’m not surprised. Just annoyed, disappointed, and ready to fight.
 I am confident that the products we offer are legal and that our work is on the right side of history. But it’s been clear for a while that rather than…
 — hayden.eth 🦄 (@haydenzadams) <a href="https://twitter.com/haydenzadams/status/1778126466984575166?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">April 10, 2024</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
Before the SEC can proceed with the case, the regulator will first need to receive approval from its five commissioners. One of these commissioners is SEC chair <a href="https://insidebitcoins.com/news/u-s-senators-chastise-the-sec-in-letter-to-gary-gensler-citing-unethical-and-unprofessional-handling-of-debt-box-case" rel="noopener noreferrer nofollow">Gary Gensler</a>, who has developed the reputation for his regulation by enforcement approach in the crypto space.&nbsp;
<h2 id="span-style-font-weight-400-the-sec-may-not-be-able-to-argue-its-broker-claim-span">The SEC May Not Be Able To Argue Its Broker Claim</h2>
Gabriel Shapiro, the former Delphi Labs general counsel, said that the SEC would be able to be win an argument that UNI is a security, but might not be victorious in its claim that UniSwap is a securities exchange.
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 Sometimes you have to laugh or else you'll cry. Question: how can you square the <a href="https://twitter.com/SECGov?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@SECGov</a>'s claim that <a href="https://twitter.com/Uniswap?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@Uniswap</a> acts as a broker with the Court's ruling against the <a href="https://twitter.com/SECGov?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@SECGov</a> just a handful of days ago? Answer: you can't. <a href="https://t.co/K42aKw5YZc" rel="noopener noreferrer nofollow">https://t.co/K42aKw5YZc</a> <a href="https://t.co/OcegMnDWVu" rel="noopener noreferrer nofollow">pic.twitter.com/OcegMnDWVu</a>
 — paulgrewal.eth (@iampaulgrewal) <a href="https://twitter.com/iampaulgrewal/status/1778149863072670169?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">April 10, 2024</a>
</blockquote>
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<a href="https://insidebitcoins.com/news/coinbase-says-the-sec-is-breaking-the-law-by-refusing-to-make-crypto-rules" rel="noopener noreferrer nofollow">Coinbase</a>&nbsp;legal chief Paul Grewal agreed with Shapiro. In his own X post, he said that the SEC would not be able to win its claim that Uniswap is a broker.
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UNI Plummets 16% On SEC Lawsuit Plan As Uniswap Vows To Fight

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