A Wells Notice is a formal warning issued by a regulator after an investigation has been completed and the regulator plans to take enforcement action against the recipient. The SEC states that the majority of tokens traded on the site are securities.
Uniswap management explained: tokens are a digital file format like a PDF or spreadsheet. The vast majority of traded tokens are stablecoins, internal tokens and utility tokens. There are also commodities such as Ethereum and Bitcoin. And tokens traded on secondary markets, including Uniswap, are not investment contracts. In circumstances where a token may represent a security, the SEC will simply deny companies registration, Uniswap added.
Uniswap stated that its activities are completely legal, so the exchange's services will remain available to users and new products will appear. The company contributes to the creation of transparent and accessible financial markets, providing users with the opportunity to independently store assets, without the involvement of intermediaries.
“If the SEC continues to attack transparent technologies that can empower Americans and lower costs for them, the United States will fall behind in developing innovations that promote free consumer choice,” Uniswap said.
In February 2023, the SEC filed a similar Wells Notice to Paxos Trust for its listing of the Binance USD stablecoin, accusing it of violating securities laws. The department is currently conducting legal proceedings with the American crypto exchange Coinbase. Last year, the regulator accused the largest crypto exchange Binance and its former CEO Changpeng Zhao of violating the Bank Secrecy Act.
Source: Bits
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