US SEC Warns Crypto Firm Uniswap of Impending Lawsuit

Uniswap said it received a Wells notice from the SEC focusing on whether the tokens it offers are securities, which the company denies.

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Uniswap said it received a Wells notice from the SEC focusing on whether the tokens it offers are securities, which the company denies. The US Securities and Exchange Commission (SEC) has issued a Wells notice to decentralised crypto exchange Uniswap warning it of legal action that is being brought against the firm. Uniswap operates a decentralised crypto marketplace where users can swap crypto tokens without the need for a centralised system for transactions. In a blog post on Wednesday (10 April), Uniswap suggests the Wells notice focuses on whether the tokens it offers are securities, which the company denies. “The reality is that tokens are a digital file format, like a pdf or spreadsheet, and can store many kinds of value. They are not intrinsically securities, just as every sheet of paper is not a stock certificate,” the blog post says, claiming the SEC action is a "political effort". In cases where a token may in fact be a security, the SEC has "refused to create a path for businesses to register," the blog post also said, adding that the SEC has “no authority from Congress” to oversee the crypto markets. Uniswap said it is "ready to fight" the SEC lawsuit and that in the meantime its suite of products will continue to be available.
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