The Securities and Exchange Commission (SEC) of the United States has just filed away its legal case against Uniswap Labs in April 2024. The news comes after the recent closures of cases against OpenSea, Robinhood, and Coinbase, which demonstrate the regulator’s new crypto-friendly approach. Since the entry of the new Trump administration, the SEC has adopted a much more flexible method compared to the strict enforcement policies implemented under the presidency of Gary Gensler.
From now on, the decentralized finance (DeFi) sector will be able to thrive without the fear of legal repercussions from the SEC, thanks to a more favorable regulatory environment.
The SEC drops the lawsuit against Uniswap Labs
After OpenSea, Robinhood, and Coinbase, the SEC also loosens its grip on Uniswap Labs, a well-known company involved in managing the decentralized exchange of the same name.
According to what was reported by the same cryptographic company, the U.S. federal agency has officially closed the investigations against it, initiated in April of last year. In that context, the SEC, led by a different government from the current one, had accused the decentralized exchange of operating as an unregistered securities broker, and of issuing assets considered as “security”.
Since then, Uniswap has never given up and has resisted against the pending legal accusations, defending its position as a trustless intermediary of financial services not controlled by its own company. At the time, it had also defined the SEC’s legal arguments as “deboli” because they relied on a completely unfounded interpretation, which considered LP tokens as investment contracts and accounting instruments. In September 2024, Uniswap was even fined $175,000 by the Commodity Futures Trading Commission (CFTC) for an alleged illegal margin product offering.
According to Amanda Tuminelli, legal head of the DeFi Education Fund, this decision by the SEC provides companies in the DeFi sector with greater freedom to maneuver in the crypto sector and allows them to focus on innovation rather than legal concerns. Hayden Adams, CEO of the decentralized exchange, celebrated the victory of the case on X, posting a message stating the following:
“Uniswap Labs is not a broker. The Uniswap protocol is not an unregistered exchange or a clearing agency or operated by Labs. The UNI is not a security.”
What does it mean for UNI, the Uniswap token?
The exit of Uniswap from the battle with the SEC represents an excellent piece of news for UNI, which, as anticipated, will no longer be labeled as a “security” coin. This grants it strong legitimacy and stability in the market, allowing for more serene growth and greater confidence from investors and users, without the fear of regulatory interventions that could hinder its evolution.
Driven by the positive news, UNI recorded a increase of 4.9% in the last 24 hours, bringing its prices to exceed the 8-dollar level. Despite this bull movement, the cryptocurrency remains still crushed by the terrible price action of recent weeks. Compared to a month ago, it is traded at -21.6%, while since December 2024 it has lost about -60%. Nevertheless, UNI remains the #27 coin in the coinmarketcap ranking, with a market capitalization of 4.9 billion dollars and an FDV of 8.8 billion dollars.
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Most likely from here on, if macro conditions allow it, the Uniswap token will enter a recovery phase, regaining that positive momentum it had marked in November 2024 with the election of Trump. With the closing of the investigation by the SEC and clearer regulations, investors might feel more incentivized to purchase UNI, now seeing a more favorable and secure environment for the crypto sector.
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DeFi is no longer under the scrutiny of US regulators
With the departure of Gary Gensler from the SEC, the decentralized finance sector (DeFi) has gained ground, thanks to a significant change in the regulatory approach. During his tenure, Gensler had adopted a very aggressive policy, often referred to as “regulation-by-enforcement“, which led to numerous punitive actions against crypto companies, including DeFi platforms. However, with his resignation in January 2025, the SEC has initiated a process of reviewing its strategy, introducing a more balanced and innovation-friendly vision in the crypto sector.
The new interim President, Mark Uyeda, has made crucial changes, including the dissolution of the Crypto Enforcement Unit and the creation of a new Crypto Task Force led by Commissioner Hester Peirce, historically favorable to cryptocurrencies. The SEC’s decision to dismiss several lawsuits, including the one against Uniswap, demonstrates an openness towards a clearer and less invasive regulation, allowing the DeFi sector to thrive without the fear of overly restrictive regulatory interventions.
In the last year, the tokens of the DeFi ecosystem have shown great volatility, alternating periods of strength and weakness compared to Bitcoin. In the first quarter of 2024, they recorded growth above the benchmark, only to lose momentum until the U.S. elections in November, which reignited enthusiasm. Currently, due to a general market downturn, the DeFi index is once again underperforming compared to Bitcoin. However, with a more favorable regulatory environment, thanks to the new SEC presidency, the DeFi sector has all the potential to recover quickly and return to being a protagonist in a bull market.
