The U.S. Securities and Exchange Commission (SEC) has closed its investigation into Uniswap Labs, the company behind the decentralized exchange Uniswap, after months of scrutiny. Initially, the SEC issued a Wells notice in April 2024, alleging that Uniswap was operating as an unregistered broker, exchange, and clearing agency, as well as potentially issuing unregistered securities. However, the SEC has now decided not to pursue further action.
Uniswap celebrated the SEC's decision as a major win for decentralized finance (DeFi), claiming the investigation's closure was a clear sign that decentralized technology can operate legally. In a blog post , the company emphasized its belief that DeFi platforms should not be subject to the same regulatory framework that applies to centralized systems. Uniswap's governance token, UNI, rose 5% in response to the news, reflecting investor optimism about the company’s future.
This decision comes amid a broader shift in the SEC's approach to cryptocurrency regulation. Under new leadership following Gary Gensler’s departure in January 2025, the SEC, led by Acting Chairman Mark Uyeda and Commissioner Hester Peirce, has been reevaluating its stance on crypto enforcement. Peirce, known for her more flexible views on crypto regulation, suggested that the agency might move away from its aggressive enforcement tactics. The SEC has already dropped investigations into other crypto companies, such as Robinhood Crypto and OpenSea, signaling a shift towards a more collaborative regulatory stance.
Uniswap’s founder, Hayden Adams, highlighted that the investigation’s closure not only represented a victory for the company but also for the broader DeFi industry, which has been advocating for a clearer and more supportive regulatory environment. Adams also pointed out that decentralized technology, like self-custody and smart contracts, operates differently from traditional financial systems and shouldn’t be regulated in the same way.
The SEC’s decision aligns with a broader rethinking of digital asset regulations. Experts like Jake Chervinsky from Variant Fund praised the outcome, saying it was a win for Uniswap as well as for the DeFi sector as a whole. He noted that the SEC’s earlier regulation-by-enforcement approach had been draining resources for crypto companies, and this change of direction was a positive step forward.
Despite the positive outcome, Uniswap’s legal troubles had significantly strained the company’s operations, forcing it to divert resources away from its core mission. Moving forward, the company remains hopeful that future regulations will be more appropriate for decentralized technologies and support growth and innovation in the space.
The SEC’s decision to close its investigation could be a turning point for the crypto industry, marking a shift towards a more favorable regulatory environment for decentralized platforms.