The latest U.S. Securities and Exchange Commission (SEC) has officially concluded its inquiry into Uniswap[UNI] Labs and has no plans for any further regulatory actions.
Back in April, the previous SEC served a Wells Notice to the company responsible for the renowned Uniswap DEX, alleging that it was running an unregistered trading platform and offering an unregistered security (UNI token).
A Victory for Decentralized Finance (DeFi)?
In February 2025, Uniswap Labs has received vindication under the new government administration. The company described it as a significant triumph for the DeFi sector.
“The resolution of our investigation is a huge relief not only for Uniswap Labs but also for the wider DeFi ecosystem comprising creators, users, and developers striving to enhance the financial system for everyone.”
Founder of Uniswap Labs, Hayden Adams, expressed regret over the three-year-long investigation but remained hopeful for the future of DeFi under the new administration.
He commented,
“I appreciate the more positive approach adopted by the new leadership at the SEC, and I am excited about collaborating with Congress and regulators to establish regulations that are truly beneficial for the DeFi space.”
Similarly, Kristin Smith, CEO of the Blockchain Association, a collective lobbying group for the industry, hailed it as a victory for the entire cryptocurrency sector and the end of regulatory intimidation tactics.
“The age of regulatory intimidation and enforcement is fading away, all thanks to the fresh perspective at the SEC.”
Following Coinbase and Robinhood, Uniswap becomes the third cryptocurrency company to have a previous lawsuit dropped by the new SEC.
UNI Token Response
Following the announcement, the UNI token surged by 12%, though it did not return to the previous narrow price range of $9-$10 observed at the start of February. Furthermore, it remained below the trendline resistance, indicating that bears continued to exert influence at the time of writing.
On another note, the regulatory certainty surrounding UNI prompted the largest group of whales (holding 10M -100M UNI) to acquire an additional 10M UNI tokens on the 25th of February.
Despite some selling activity from the 1M-10M whale group, the increased accumulation by larger whales could hint at a potential recovery for the token if overall market sentiment improved.