Uniswap DEX-linked Uniswap Labs has asked the SEC to abandon its proposal to regulate the DeFi sector, citing a recent US Supreme Court ruling.
Both the SEC and the industry have better ways to spend their resources than in litigation over an unlawful rule. Our letter to the SEC is here: https://t.co/yAltMdmD3e. 3/3
— Katherine Minarik (@MinarikLaw) July 9, 2024
In April 2023, the Commission proposed expanding the definition of “exchange” in the 1934 Act to include cryptocurrency market participants in DeFi. Uniswap was among those who opposed it.
On June 28, during the consideration of the case of Loper Bright Enterprises v. Raimondo, the Supreme Court decidedthat lower courts are no longer required to defer to federal agencies when interpreting “ambiguous” laws.
Uniswap says this means the SEC will simply be spending “limited resources” trying to change the definition of “exchange,” which was “unlikely to succeed” even before the Supreme Court’s decision.
The company also said the “lack of clear boundaries” of the proposed changes would force the agency to litigate each case on a case-by-case basis, leaving little guidance and inconsistency.
Uniswap Labs has proposed reopening the SEC’s comment period to give stakeholders the opportunity to take into account the Supreme Court’s recent decision.
In April 2024, Uniswap Labs received a warning from the agency about a possible lawsuit.
A month later, the company called the SEC’s legal argument “weak” and said it was prepared to fight back in court.
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Source: Cryptocurrency
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