Uniswap Labs Challenges SEC Authority Following Supreme Court Ruling
Uniswap is a popular decentralised crypto exchange known for its highly decentralised trading services. A few months ago, the American securities regulatory body sued the company for providing crypto trading services. According to the SEC’s charges, Uniswap acted as a securities broker without registering with any financial regulatory body.
Following the Supreme Court’s recent ruling against the “Chevron Deference,” Uniswap Labs is already leveraging this decision. In a letter to the SEC on Wednesday, Uniswap Labs’ representative lawyers argued that the SEC agency can no longer use the “Chevron deference ” to assert wide-ranging control over the US crypto market.
This letter comes after Uniswap’s critical comments to the US SEC on June 13, opposing a proposal to broaden the legal definition of “exchange” to include DeFi protocols.
The Uniswap Labs, the developer of the world’s largest decentralised exchange (DEX), would be directly affected by such a change.
Earlier this, Uniswap had described the SEC’s proposal as “staggeringly broad and unprecedented,” predicting it would not withstand a judicial challenge. With the Supreme Court’s decision in the Loper Bright case on June 28, Uniswap Labs believes their stance is now reinforced.
“For better or worse—the Commission will not be able to claim the benefit of Chevron deference to defend its aggressive and atextual interpretation of its statutory authority,” Uniswap Labs stated. “There is no reason to spend the Commission’s limited resources on that issue, or to force the industry to do the same.”
Crypto vs SEC
For the past two years, the SEC has been trying to regulate the crypto sector using traditional securities laws.
Crypto executives from multiple firms have opposed the SEC’s approach of enforcing regulation on the crypto space, but the SEC has not addressed this criticism.
Currently, many high-profile crypto companies are facing legal challenges due to lawsuits by the SEC.
Most crypto leaders hope to see improvements in this sector by 2025 with the change in American leadership.
