The U.S. Securities and Exchange Commission (SEC) has officially ended its investigation into Uniswap Labs, bringing a year-long regulatory battle to a close. The probe, which centered around allegations that the decentralized exchange (DEX) was operating as an unregistered broker, exchange, and clearing agency while issuing unregistered securities, has now concluded without enforcement action.
Following the announcement, Uniswap’s native token, UNI, saw a temporary price increase before settling amid broader bearish market conditions. Despite recent price struggles, the regulatory decision represents a significant moment for the decentralized finance (DeFi) sector.
Uniswap’s Battle with SEC Ends Without Charges
The SEC’s scrutiny of Uniswap began last year when the agency issued a Wells Notice to the company, signaling potential enforcement action. The move sparked concern within the crypto industry, as it was seen as a critical test for the regulatory treatment of decentralized exchanges.
🚨NEW: Another rollback by the @SECGov’s Enforcement Division.
The agency is closing its investigation into DeFi exchange @Uniswap. https://t.co/LAsCrir17u
— Eleanor Terrett (@EleanorTerrett) February 25, 2025
Throughout the investigation, the DeFi community rallied behind Uniswap, arguing that traditional financial regulations do not align with decentralized protocols. Many industry participants contended that applying legacy rules to blockchain-based platforms stifles innovation and fails to account for the unique nature of decentralized finance.
With the agency dropping the case, Uniswap’s leadership sees the decision as a turning point. CEO Hayden Adams expressed optimism, emphasizing the need for new regulations that cater specifically to DeFi rather than retrofitting traditional financial laws.
Uniswap’s regulatory win is part of a broader trend under the American watchdog’s new leadership, which has taken a less aggressive stance toward crypto enforcement. Since the beginning of the new presidential administration last month, the SEC has withdrawn multiple cases, including high-profile investigations into Coinbase, Opensea, and Robinhood.
The shift in regulatory approach suggests a possible change in how the U.S. government intends to oversee the crypto sector. While previous leadership pursued an aggressive enforcement strategy, recent developments indicate a move toward a more measured stance.
Market Reaction & UNI Token Volatility
Despite the regulatory victory, UNI has struggled in recent weeks, experiencing a 30% price decline over the past month. Even the highly anticipated launch of Uniswap’s v4 upgrade and the introduction of the Unichain mainnet failed to drive sustained bullish momentum.
However, following the SEC’s announcement, UNI briefly surged in price, accompanied by a sharp 140% increase in daily trading volume, according to CoinMarketCap data. While the broader crypto market remains volatile, the resolution of Uniswap’s legal uncertainty may offer renewed confidence for investors and developers in the DeFi ecosystem.
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