摘要：很有必要先了解下：“WellsNotice”是美国证券交易委员会(SEC)发给个人或公司的一种通知，意味着SEC已经完成和发现了对方的违规违法行为的调查，并打算采取进一步的法律诉讼或行政处罚的行动。【2】SEC准备起诉Uniswap哪些违规违法行为？...
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“Tracking and Analyzing #SEC's Proposed Lawsuit Against Uniswap Labs”
Two days ago, the SEC issued a Wells notice to Uniswap Labs, and the outcome of this matter may affect the entire development of the cryptocurrency and Defi ecosystem. It poses a threat to innovation and decentralization in the Defi sector, directly impacting the token prices. This is definitely worth paying attention to!
【1】What is a Wells notice? It's important to understand:
A "Wells Notice" is a notification issued by the U.S. Securities and Exchange Commission (SEC) to individuals or companies, indicating that the SEC has completed an investigation into the individual or company's violations and intends to take further legal action or administrative penalties.
In simpler terms, it's like saying, "I'm gearing up for a legal battle against you, so be prepared."
While receiving a Wells notice does not necessarily mean that a lawsuit will be filed, the typical process involves:
1. SEC issues a warning to the individual or company after completing the investigation;
2. After receiving the Wells notice, the individual or company has 30 days to refute the allegations and provide evidence of their innocence;
3. The SEC has 6 months from issuing the notice to decide whether to file a lawsuit or take enforcement action;
Although a lawsuit has not been officially initiated yet, the probability is high and it may happen next month.
Previous cases involving crypto entities that received Wells notices:
· Ripple Labs:
One month after receiving a Wells notice in December 2020, the SEC filed charges against Ripple and two of its executives for selling unregistered securities, resulting in XRP being delisted from Coinbase;
· Coinbase:
In March 2023, SEC's Wells notice to Coinbase led to a more than 15% drop in stock price after hours, and the lawsuit is still ongoing;
· Paxos (issuer of BUSD stablecoin):
Soon after receiving a Wells notice from the SEC in February 2023, Paxos terminated its collaboration with Binance on BUSD and New York's Department of Financial Services ordered Paxos to stop minting new BUSD tokens;
【2】What violations is SEC preparing to sue Uniswap for?
Currently, the SEC has not formally filed a lawsuit, and Uniswap Labs has not provided a copy of the Wells notice, so there is no specific information on the charges. However, based on the SEC's jurisdiction, the likely charges are:
1. Operating an unregistered securities exchange and issuing/selling unregistered securities;
2. Fraudulent and deceptive behavior;
3. Insider trading;
4. Violation of disclosure requirements;
5. Violation of regulatory requirements (e.g., KYC and AML);
Last year in September, Uniswap faced a class-action lawsuit in the U.S. over alleged "fraudulent tokens" issued on the protocol. The platform was accused of operating an unregistered exchange and violating SEC's registration requirements, but the court ruled in favor of Uniswap, stating that the protocol was lawfully used and the developers were not liable for misuse by others.
According to the Howey test defined by the U.S. Supreme Court, Uniswap's protocol and its token $UNI do not meet the legal definition of a security or investment contract. Therefore, the likelihood of the 1st and 2nd charges is weakened.
However, it is likely that the SEC's aim with this lawsuit is to exert control over UniSwap itself, similar to the government taking control of "BinanceUS" from Binance. This is an attempt to challenge the core principles of decentralization and autonomy that support the DeFi ecosystem.
【3】It may take several years to reach a final judgment
As the legal framework for crypto regulation in the U.S. is still unclear, and there's no precedent for the Uniswap case, the SEC may not gain an advantage in court in the short term. The founder of UniSwap also stated, "This battle could last for years and may even go to the Supreme Court."
It's clear that the SEC's lawsuit is expected to provide regulatory clarity for the industry, but it may also bring sanctions that could restrain the innovation and decentralization of the DeFi sector.
Don't forget to like and share if you found this information valuable. Boring will continue to track the latest developments in the SEC vs Uniswap case and provide updates for UNI supporters!
