Uniswap Labs Asks SEC: To expand the Securities Exchange Act of 1934 scope, Uniswap Labs has officially requested that the United States Securities and Exchange Commission (SEC) reconsider its proposed rule modifications. According to Uniswap, the proposed amendments would violate the SEC’s power over the DeFi platforms and, given the recent ruling, would be nullified by the Supreme Court.
Uniswap Labs Urges SEC to Rethink DeFi Rule
The recent decision in Loper Bright Enterprises v. Raimondo by the Supreme Court altered the legal landscape, which is Uniswap Labs’ primary argument, according to Coinbase CLO Katherine Minarik. This decision reverses the prior practice of federal agencies being able to carry out vague legislative requirements due to the deference shown to Chevron.
According to Uniswap Labs, the SEC’s definition of “exchange” lacks boundaries and evidence if this deference is not observed. Courts will likely reject the SEC’s revisions because they contend that the statute’s definition does not cover DeFi Rule Expansion protocols. In April, the SEC sent a Wells Notice to Uniswap Labs Asks SEC, indicating that the agency intends to sue the firm.
Uniswap was accused of trading securities without the necessary registration as both an exchange and a broker in the notice. Conversely, Uniswap Labs has defended itself by claiming that a passive technology better describes its protocol than an exchange. To incorporate their operations, the company said the SEC would need to revise the existing definition of an exchange.
Call For Reopened Comment Period
After the Supreme Court’s decision, Uniswap Labs pleaded with the SEC to reevaluate the proposed changes and extend the comment period. They believe that the public must take an active role in the judicial system because of how things have evolved. A legal standard that presumed Chevron deference, under which the initial comments were made, is no longer valid.
In light of this, Uniswap Labs has reiterated the importance of conducting a review to check whether the proposed legislation would be compatible with existing law and not go beyond the parameters established by Congress.
Concurrently, Uniswap Labs Asks SEC contended that the suggested changes would impede innovation and cause uncertainty in the law. They pointed out that the changes would hit the DeFi Rule Expansion industry, which processes transactions worth trillions of dollars.
Citing SEC v. Binance Holdings and SEC v. Courts, they have always hesitated to apply securities rules to decentralized crypto services. According to Coinbase, Inc., the company, rather than relying on clear regulations. According to their arguments, the SEC’s approach is characterized by regulatory ambiguity and the possibility of different legal results.
Uniswap’s Commitment to Legal Compliance
Uniswap Labs will not give up its claim or the DeFi ecosystem despite regulatory demands. The founder of Uniswap, Hayden Adams, voiced his disapproval of the SEC’s regulatory approach earlier this year, claiming that the company operates within the law.
The market is hurt, says Adams, because the SEC decided to go after Uniswap and Coinbase. Two large companies have not investigated the fraudsters since Uniswap Labs views the SEC’s actions as politically motivated. The company is prepared to take legal action against—the agency to the highest court in the land.
Final Thoughts
In the dynamic landscape of decentralized finance. The conflict between new ideas and government oversight is fully displayed in Uniswap Labs’ call. The SEC is to reevaluate its planned DeFi Rule Expansion. Fostering an environment where innovative financial innovations can thrive is just as vital as protecting investors and ensuring market integrity.
The fate of DeFi is up in the air as discussions between regulators and industry players carry on. The future of Uniswap Labs Asks SEC and other similar platforms. The expansion of decentralized financial systems is heavily dependent on this conclusion. To achieve a legal framework that benefits all players in the DeFi ecosystem. Working together in an atmosphere of mutual understanding and a shared commitment to progress will be crucial.
Read Also: June 5: Bitcoin Nears $71K, ETH, SOL, Others Copy Pump
