According to BlockBeats, Uniswap Labs issued a response on May 22nd to a Wells notice received from the U.S. Securities and Exchange Commission (SEC) in April. The company stated that the SEC should embrace open-source technologies that improve outdated business and financial systems, rather than trying to eliminate them through litigation. Uniswap Protocol, they argue, is a safe, low-cost, transparent infrastructure that 'protects investors, maintains fair, orderly, and efficient markets'. Ironically, this is the mission of the SEC.
Uniswap Protocol is a significant innovation in the market that benefits consumers. It is an autonomous software that allows users to trade directly and securely without paying fees to centralized intermediaries or relying on them to protect asset safety. The service is available globally 24/7, not just from 9 am to 5 pm, Monday to Friday. These features give individuals unprecedented autonomy to control what they own and create value on the internet in new ways.
The legal theory of the SEC is weak and incorrect, according to Uniswap Labs. The SEC claims that the Uniswap Protocol is an unregistered securities trading platform controlled by Uniswap Labs, the Uniswap interface is an unregistered securities broker, and the UNI token is an investment contract. Tokens are a file format, like PDFs. The protocol is a generic computer program that anyone can use and integrate, like TCP/IP. Hundreds of thousands of users received UNI tokens for free after participating in the protocol early, without a contract, and not expecting to profit solely from the efforts of Uniswap Labs.
Uniswap Labs is ready to fight and will continue to build. The SEC should not use taxpayer resources to sue us, the company stated. Their lawyers have already achieved a 2-0 record in SEC cases. They will defend the right to use and distribute challenging existing technology, adapt, and compete with generic code. They will continue to do what they do best: build.
