The potential lawsuit between the U.S. Securities and Exchange Commission (SEC) and Uniswap has garnered attention from the XRP community, with attorney Bill Morgan drawing parallels between this case and the ongoing Ripple lawsuit.
Uniswap, the world’s largest decentralized exchange, recently announced that it had received a Wells Notice from the SEC, indicating that the regulatory agency plans to take enforcement actions against the exchange. This news had a significant impact on UNI, Uniswap’s native token, which experienced a 9.5% drop in value within a 24-hour period. Uniswap CEO Hayden Adams expressed his disappointment with the SEC’s move and stated that he is ready to fight back.
This lawsuit against Uniswap adds to the list of leading cryptocurrency entities that the SEC has filed charges against, including Ripple, Coinbase, and Binance. Interestingly, the SEC’s notice to Uniswap comes just two months after the agency implemented new rules concerning liquidity providers.
Australian-based attorney Bill Morgan drew attention to the similarities between the ongoing Ripple lawsuit and the potential legal case against Uniswap. Morgan’s comment was in response to Adam Cochran, founder of venture capital firms Cinneamhain Ventures, who pointed out that the SEC failed to provide clear regulatory guidance for Uniswap during its six years of operation.
Morgan highlighted that the SEC followed a similar pattern with Ripple, waiting eight years after XRP began trading before bringing charges against the company. Throughout these eight years, the SEC failed to offer sufficient guidance to regulate the crypto industry. Ripple argued that this lack of clarity within the agency was evident in the circumstances surrounding Bill Hinman’s speech, as uncertainty remained regarding what constitutes securities.
Morgan emphasized that the SEC’s approach has been to wait for a company to achieve success before filing charges to secure substantial penalties. For instance, the agency is currently seeking nearly $2 billion in penalties from Ripple for its unregistered institutional XRP sales.
Matt Corva, General Counsel at Consensys, added that the SEC’s enforcement actions are aimed at creating chaos to prevent decentralized finance (DeFi) from threatening the traditional financial system. It is worth noting that Corva previously stated in 2020 that there was no attack on crypto after the SEC sued Ripple. Now, with multiple high-profile crypto companies facing SEC enforcement, Morgan argued that Corva should have recognized the agency’s intentions back in 2020.
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