TechFlow news, according to The Block, Uniswap Labs has responded to the Wells Notice issued by the U.S. Securities and Exchange Commission (SEC), stating that the SEC's legal allegations are riddled with errors and baseless, and that the SEC's arguments fail to adequately consider the platform's use of commodities and the true nature of these commodities.
On April 10, the SEC released a Wells Notice targeting Uniswap Labs. A Wells Notice indicates the potential for future enforcement action against the recipient.
In a press release on Tuesday, Uniswap Labs noted that the SEC accused the decentralized exchange (DEX) of operating as an unregistered securities exchange and an unregistered broker-dealer, with the UNI token representing an investment contract.
In its response, Uniswap Labs added that the SEC's "radical theory" attempts to extend its regulatory reach beyond its proper jurisdiction, and expressed confidence that the House of Representatives will pass legislation granting the Commodity Futures Trading Commission (CFTC) authority over digital asset trading. Uniswap Labs also stated that regulators "should embrace open-source technology to improve outdated business and financial systems, rather than trying to litigate it out of existence."
