Uniswap has responded to the SEC’s Wells Notice, criticizing the agency’s legal arguments as “weak.” The decentralized exchange argues that the SEC’s case lacks merit and highlights flaws in their reasoning.

Uniswap Labs responded with a 40-page document to the SEC’s Wells Notice, attempting to refute potential litigation and urging the agency to dismiss the case. The decentralized crypto exchange countered the SEC’s allegations that its operations violate US securities laws, offering a detailed explanation as to why the claims are unfounded.Uniswap operates as a decentralized finance (DeFi) platform catering to developers, traders, and liquidity providers. However, the SEC maintains that the Uniswap Protocol functions as an unregistered securities exchange under Uniswap Labs’ control, classifying the interface as an unregistered securities broker-dealer and the UNI token as an investment contract.In response, Uniswap emphasized that the SEC’s legal interpretations are weak, citing court rulings that contradict their claims. The crypto marketplace argued that the agency is unfairly expanding the definitions of securities, exchanges, and contracts. Additionally, Uniswap argued that the majority of trading on their platform does not involve securities, with over 65% involving assets the SEC itself has acknowledged are not securities.Furthermore, Uniswap estimated that approximately 75% of its users are international, suggesting that US securities laws likely wouldn’t apply to them. The platform claimed that even if certain transactions on Uniswap resembled securities, it wouldn’t qualify as a securities exchange due to its primary purpose and design not being intended for such transactions.The SEC has recently become more active in regulating the crypto industry, issuing Wells notices, initiating lawsuits, and settling with various companies. Their current focus lies on Ethereum and DeFi platforms, with notable names like ShapeShift, TradeStation, Uniswap, Consensys, and the Ethereum Foundation all facing legal consequences.