Judge Katherine Polk Failla of the Southern District of New York dismissed a class action lawsuit against Uniswap and Paradigm. Plaintiffs argued that Uniswap should be held responsible for losses caused by fraudulent tokens sold on the protocol, but a judge ruled that protocol developers are not liable for user losses or injuries caused by third parties.

Uniswap likened the lawsuit to “holding car developers accountable when a third party uses a self-driving car to cause a traffic accident.” The judge believed that there was no transaction between the plaintiff and the Uniswap platform and Uniswap Labs, and the existing securities laws do not involve the liability of the DeFi protocol when others use the protocol to commit fraud.

After the judge’s decision, Uniswap founder Hayden Adams said, “This is a huge victory, long live DeFi. I have long been concerned that the legal community will provide poor legal interpretations of our complex technology industry. Seeing the US court support It’s something I’ve subscribed to for years and I’m very excited.”

It is worth mentioning that Judge Katherine Polk Failla treated Ethereum as a commodity rather than a security in her ruling in this case. And she was also the judge in the SEC v. Coinbase case.

How much impact do you think this judgment will have on the DeFi industry? Welcome to share your opinions in the comment area! Also, don’t forget to follow us on Twitter and Telegram for the latest cryptocurrency market updates!