Uniswap Labs Escapes SEC Investigation, UNI Token Pumps 15%

As a part of a larger shift towards crypto-friendly regulation under new leadership, the U.S Securities and Exchange Commission (SEC) concluded its investigation of Uniswap Labs

The U.S. Securities and Exchange Commission (SEC) has concluded its investigation of Uniswap Labs without taking any disciplinary action, according to an announcement by the decentralized exchange (DEX) on February 25.

The investigation, which began in 2021, examined whether Uniswap should register as a securities exchange and if its UNI digital token should be designated as a security.

The SEC made this decision after parallel complaints against Coinbase (NASDAQ:), Robinhood Crypto, and Opensea were settled.

In April, the SEC issued a Wells notice claiming that Uniswap Labs operated as an unregistered broker, operated an exchange, and issued an unregistered security.

This change takes place as the SEC undergoes new leadership. SEC former head Gary Gensler stepped down from his position as chair in January. Acting Chair Mark Uyeda established a task force to create better crypto rules following his appointment in February.

With this closure, the legal uncertainty is removed and the platform development at Uniswap Labs can now concentrate on the new Uniswap version four (v4) and other projects.

The move generates positive sentiments about decentralized finance (DeFi) together with increased expectations for collaborative regulation that will drive innovation and investment.

The SEC’s position maintains consistency with the new Trump administration’s goal to review existing regulations as their long-term impact remains unknown. The industry hopes that the oversight role of the agency will be accompanied by fewer enforcement-based policy approaches as time goes by.

According to the Coingecko data, Uniswap’s governance token, UNI, increased by about 15.42% from $7.52 to $8.52 after the announcement by the SEC.