Uniswap Labs Issues Response to SEC Wells Notice, Disputes Classification of Crypto Tokens as Securities

Uniswap Labs, the creator of Ethereum’s largest decentralized trading platform, has submitted a 40-page filing to the SEC in response to a Wells notice issued by the regulatory agency. The filing strongly denies the accusation that Uniswap Labs operates an unregistered exchange and broker-dealer. Uniswap Labs argues that crypto tokens, including its governance token UNI, should be considered as digital files rather than securities. The company challenges the SEC’s assertion that LP tokens, obtained by users when they invest in Uniswap pools, should be classified as securities. Uniswap Labs maintains that LP tokens are “bookkeeping devices” and do not fall under the regulator’s frameworks. The SEC’s upcoming enforcement action against Uniswap Labs targets both UNI tokens and LP tokens. Uniswap Labs’ response sheds light on the SEC’s allegations. The company argues that the SEC would need to redefine the definition of an exchange in order to establish jurisdiction over Uniswap. Uniswap Labs’ filing comes after Consensys filed a lawsuit preemptively against the SEC, claiming that the regulator had exceeded its authority.