The price of the UniSwap platform's UNI token has plummeted. The 10% drop in just an hour was caused by the SEC. The US Securities and Exchange Commission sent the so-called wells notice. Hayden Adams announced his “readiness to fight” with the American regulator.
The price of the UNI token is diving – does the SEC start another battle?
Although the entire cryptocurrency community is in an optimistic mood resulting from the bull market and the upcoming bitcoin halving, the SEC does not intend to stop its activities. The next target of the American regulator turned out to be the UniSwap platform. UniSwap's official X profile published an information entry regarding the fact that the company received a so-called wells notice from the SEC. In short, it is a letter informing the entity that the SEC intends to initiate enforcement proceedings against the addressee. Such a letter contains information about the charges brought against the addressee and potential penalties.
The market received this information extremely strongly, as the price of the UNI token dropped by over 10% within an hour. At the same time, Hayden Adams announced that he is “ready to fight” the Securities and Exchange Commission. Adams stated that:
I'm not surprised. Just annoyed, disappointed and ready to fight. This fight will take years and may reach all the way to the Supreme Court.
What might the SEC lawsuit involve and why was the Wells Notice sent now?
UniSwap has not shared the exact content of the wells notice. However, the blog post regarding the SEC notification clearly states that UNI is not a security and does not meet the U.S. legal definitions of a securities exchange or broker-dealer. The reasons for the letter and the lawsuit are presented in this blog entry on a chrome platter.
Legal consultant and chief regulatory officer of Conensys, Bill Hughes, wrote a tweet on X that explains the situation well. Well, SEC staff must first get approval for the lawsuit from the agency's five commissioners, including Chairman Gary Gensler. Considering previous cases of wells notices and actual lawsuits, it will still be a long time before the SEC takes UniSwap to court.
