US SEC Drops Uniswap Case, Will UNI Price Rebound?

The US Securities and Exchange Commission (SEC) is set to drop its case with Uniswap Labs in what is considered a sustained shift in its pro-crypto agenda. According to an update from Uniswap Labs, the investigation into the case comes with no further action.

Uniswap Case and the SEC Turnaround

According to the update, Uniswap Labs said the case closure confirms what it has always known: that it complies with the law. The trading platform said its technology facilitates a new market that is transparent, efficient, and accessible.

In its update, the firm recalled the Wells Notice it received from the US SEC in April last year. Through the notice, the decentralized exchange platform was accused of breaking Federal Securities laws by supporting tokens that constitute investment contracts.

The closure of this case is not the first of its kind. Thus far this month, the SEC has revealed plans to close its lawsuit against Coinbase, signaling a new regulatory order. In the same manner, commission-free brokerage firm Robinhood also confirmed that the SEC has closed its case.

According to Uniswap, the current trajectory is evidence that America is finally ready to lead the future of Decentralized Finance (DeFi)

Industry Reaction to the Uniswap and US SEC Case

Reacting to the new development, Uniswap Labs Founder Hayden Adams said the DEX platform is not a broker. He added that the exchange did not operate illegally beyond this and that UNI, its native token, is not a security.

“They went after us despite having no clear legal basis, as part of a strategy of arbitrary enforcement to try to force DeFi into a regulatory framework that doesn’t fit—all while refusing to provide clear rules or a path to compliance,” he said in his X post. 

Other industry leaders have also waded into the new development. While Jesse Powell, the top developer of the Base protocol, reacted with a ‘Salute’ emoji, the community on X thanked Hayden and the UNI team for standing up to the regulator.

UNI Price Outlook: is a Rebound Imminent?

Over the past 24 hours, UNI, the native token of the DEX platform, has witnessed a heavy selloff. According to CoinMarketCap data, UNI has trimmed its losses to 0.1% in the past 24 hours. This comes after the token jumped by over 3% within an hour since the US SEC update on the Uniswap case made the rounds.

While the UNI selloff aligns with a sudden selloff in BTC price, the sentiment is improving with expectations of a complete rebound in the near term.