Uniswap Challenges SEC's Proposed Amendments to 1934 Exchange Act

Despite the long-standing presence of cryptocurrencies and the Web3 industry, the urgency of ongoing regulatory battles and unresolved questions is more pressing than ever. This is particularly problematic given the rapid development of various sectors like P2E, SocialFi, DeFi, CEX, DEX, MEME, NFT, AI, and many others.

In this news article, Coinmooner wants to share important information with readers about a call from Uniswap, a decentralized exchange (DEX) on Ethereum that facilitates ERC-20 token trading among traders. Uniswap is urging the U.S. Securities and Exchange Commission (SEC) to reject amendments to the 1934 Exchange Act that aim to expand regulation of the DeFi sector.

Uniswap representatives have raised a crucial point about the proposed amendment, stating that its scope 'has no apparent limits' for the public. This could mean that the SEC would have to conduct court cases on an individual basis against various crypto firms, leading to inconsistencies and a lack of clear guidelines.

Coinmooner team decided to delve deeper into the situation, as this is not the first time Uniswap has strongly disagreed with the SEC's decisions and actions. You can find the details in our article "From 285,000 to 241,000: The 15% Drop After Uniswap's 0.25% Fee Increase". In April 2023, the SEC first proposed expanding the definition of exchanges to include DeFi platforms, which led to repeated objections from Uniswap Labs. On July 9, the company again expressed its disagreement, justifying it with a new argument. The developers referred to the Supreme Court's June 28 decision, which overturned the Chevron doctrine, freeing courts from relying on federal agencies when interpreting ambiguous laws.

Uniswap Labs believes the SEC is wasting its limited resources since the court will eventually reject the new interpretation of the law. According to the company, the SEC's amendments are based on outdated legal norms, and officials should either abandon their adoption or reopen the comment period.

Like other DeFi platforms, Uniswap has no central authority acting as an intermediary between buyers and sellers. The U.S. Treasury Department previously stated that regardless of the degree of decentralization, such services must comply with the law and should be classified as financial institutions under the Bank Secrecy Act (BSA).

Coinmooner will closely monitor developments and promptly inform readers of all the nuances. CoinMooner also reminds everyone that the Web3 industry offers opportunities for earning and decentralization and is fertile ground for many fraudulent schemes. Therefore, it is strongly recommended that one should always use the most advanced protection methods to minimize the risk of financial loss.