SEC dismisses investigation into Uniswap as number of crypto legal cases decline

• The US SEC has dropped its investigation into DeFi protocol Uniswap.
• The investigation, which began in April, claimed that Uniswap might be functioning as an unregistered broker.
• Uniswap Labs CEO Hayden Adams stated that he looks forward to working with the SEC to establish DeFi rules.

The US Securities & Exchange Commission (SEC) has officially concluded its multi-year investigation into Uniswap Labs without taking any enforcement action. This adds to the fast growing list of resolved legal cases between the regulator and crypto companies since Donald Trump became president.

SEC drops investigation against Uniswap as crypto community marks another win

The SEC has dismissed its probe into DeFi protocol Uniswap, marking yet another victory for crypto companies as the agency scales down its crypto crackdown.

The investigation was closed with no charges or penalty against Uniswap Labs.

The SEC issued a Wells notice to Uniswap Labs in April 2024. The agency argued that the protocol engaged in unregistered broker or clearing activities and alleged that the protocol's UNI token was issued as an unregistered security. 

A Wells notice is a formal notification that the SEC intends to pursue enforcement action against an individual or company after completing an investigation.

“The SEC (under the previous admin) tried to claim that Uniswap Labs operated an unregistered broker, exchange and clearing agency and issued an unregistered security. Those claims have now been dropped,” said Uniswap Labs CEO Hayden Adams in an X post on Monday.

Adams claimed that the SEC pursued the investigation as part of an "arbitrary enforcement" without providing clear regulations.

Hayden hopes to work with the new SEC leadership and Congress to ensure a balanced regulatory framework for DeFi and to establish proper rules.

The latest trend of closing enforcement actions against crypto companies showcase the new Trump administration's determination to offer a deregulated environment for the crypto industry. The crypto industry was a big backer of the Republican president’s campaign.

Last week, the SEC agreed to drop its lawsuit against crypto exchange Coinbase, while NFT marketplace OpenSea reported that the agency ended its investigation following a Wells notice it received last year.

Similarly, on Monday, Robinhood announced that the SEC had closed its investigation into its crypto trading platform without taking any enforcement action.

UNI is up slightly in the past few hours following the announcement, trading at a 1% gain at press time, while the wider crypto market experiences a bloodbath.