SEC Abandons Uniswap Investigation in Major Policy Shift

The US Securities and Exchange Commission (SEC) has abruptly terminated its investigation into Uniswap Labs without taking disciplinary action. This marks a significant reversal in the regulator's approach to cryptocurrency oversight since the departure of former Chair Gary Gensler.

Uniswap Labs announced the closure on February 25, 2025, via social media platform X. "This is a huge win for DeFi and reaffirms what we've always known – that the technology we build is on the right side of the law, and our work is on the right side of history," the company stated.

The case against Uniswap is not isolated. References to the long-running Ripple Labs lawsuit, initiated in December 2020, have disappeared from the SEC website. Market observers interpret these developments as evidence of a substantial policy shift under the Trump Administration's new SEC leadership.

The Uniswap investigation began in April 2024 when the SEC issued a Wells notice. The regulator alleged that Uniswap Labs operated as an unregistered broker and exchange while issuing unregistered securities.

Hayden Adams, inventor of the Uniswap protocol, criticized the SEC's approach. "They went after us despite having no clear legal basis, as part of a strategy of arbitrary enforcement to try to force DeFi into a regulatory framework that doesn't fit—all while refusing to provide clear rules or a path to compliance," Adams said. He noted the investigation lasted over three years, "forcing us to waste incredible amounts of time and millions of dollars."

Katherine Minarik, Uniswap's Chief Legal Officer, highlighted broader consequences. "It's the right result to have our SEC investigation closed without any enforcement action. But there is no way to unwind the enormous (and unnecessary!) costs of so many other investigations and litigations in crypto," she said. Minarik pointed to missed opportunities: "The good products to improve financial access for all that we couldn't build. The good jobs in America that we couldn't create."

The decision signals a fundamental shift in how US regulators view decentralized finance. Adams emphasized this point: "It reaffirms what we've said all along: that decentralized technology and self-custody are inherently different from the centralized, intermediated systems they aim to replace."

Industry participants view the SEC's retreat as more than an isolated case dismissal. It potentially represents a turning point in US cryptocurrency regulation, departing from the enforcement-heavy approach that characterized the previous administration.

Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.