The US Securities and Exchange Commission’s (SEC) aggressive approach towards the digital assets industry continues. This regulatory action led the crypto community filled with anger. Coinbase’s legal chief raised big questions about the SEC’s enforcement action against Uniswap Labs.
Uniswap faces legal actions
Paul Grewal, Chief Legal Officer of Coinbase in the post stated that Sometimes you have to laugh or else you’ll cry. He mentioned how can you square the SEC’s claim that Uniswap acts as a broker with the Court’s ruling against the commission. The simple answer is no you can’t, he added.
The SEC’s move appears to be part of its broader campaign to apply securities laws to crypto related companies.
As reported, Uniswap Labs revealed that it had been notified of potential enforcement action by the SEC. However, the specifics of the watchdog’s concerns took time to be clear. Uniswap Labs is the main developer behind the decentralized cryptocurrency exchange Uniswap.
UNI price drops
Its native token price has dropped by a massive 16% in the last 24 hours. This has added to its decline of 34% in the last one month. Uniswap (UNI) is trading at an average price of $9.37, at the press time. UNI was trading over the $14 price level this morning. However, it is now down by 79% from its all time high of $44.97 record on May 03, 2021.
UNI’s 24 hour trading volume is up by big 370% to stand at $701 million. This suggests that the investors are moving their money out. Its market cap stands at $5.6 billion.
This move comes in when the crypto market is recovering from the recent correction. The cumulative crypto market cap is up by 1.79% over the last day to stand at $2.65 trillion. Bitcoin price is up by more than 2% in the last 24 hours. BTC is trading at an average price of $70,682, at the press time.
Ethereum price also grew by over 2% in the last 24 hours. ETH is trading at an average price of $3,590, at the press time.
The crypto community has come in support of Uniswap Labs and its founder, Hayden Adams. However, prominent figures like Charles Hoskinson have asked for the need for regulatory clarity. This response shows a demand for fair regulations that can balance innovation with investor protection. On the other hand, many argue that DeFi platforms like Uniswap play a crucial role in building financial transparency.
