The XRP community has shared their thoughts on the potential legal battle between the SEC and Uniswap, with prominent crypto lawyer Bill Morgan drawing parallels to the ongoing Ripple lawsuit.
Uniswap, the largest decentralized exchange in the world, recently announced that it had received a Wells Notice from the U.S. SEC, indicating that the regulatory agency intends to take enforcement actions against the exchange.
This news had a significant impact on UNI, the native token of the Uniswap platform, causing it to drop by 9.5% within 24 hours. Uniswap CEO Hayden Adams expressed his disappointment with the SEC’s decision and stated that he is prepared to fight back.
The SEC’s pursuit of enforcement actions against Uniswap adds to its list of charges against other leading cryptocurrency entities, including Ripple, Coinbase, and Binance. It is worth noting that the notice sent to Uniswap comes two months after the SEC implemented new rules for liquidity providers.
Amidst the ongoing controversy, Australian attorney Bill Morgan pointed out a similarity between the ongoing Ripple lawsuit and the potential case against Uniswap by the SEC.
Morgan’s observation was in response to statements made by Adam Cochran, founder of venture capital firms Cinneamhain Ventures. Cochran questioned why the SEC decided to issue a Wells Notice to Uniswap after six years of its operation without providing clear regulatory guidance.
In response, Morgan highlighted that the SEC followed a similar pattern with Ripple, waiting eight years after XRP began trading before filing charges against the company. During these eight years, the SEC failed to offer sufficient guidance to regulate the crypto industry. Ripple argues that the agency itself was uncertain about what should be considered securities, as evidenced by the circumstances surrounding Bill Hinman’s speech.
Morgan emphasized that the SEC’s strategy appears to be waiting for a company to achieve success before filing charges and seeking substantial fines. The agency is currently seeking nearly $2 billion in penalties from Ripple for its unregistered institutional XRP sales.
Matt Corva, General Counsel at Consensys, also commented on the situation, suggesting that the SEC’s enforcement actions aim to create chaos and prevent decentralized finance (DeFi) from challenging the established financial system. It is worth noting that Corva previously claimed in 2020 that there was no attack on crypto after the SEC sued Ripple. However, with the SEC now targeting multiple high-profile crypto companies, Morgan noted that Corva should have realized the agency’s intentions back in 2020.
Disclaimer: This article provides information and should not be taken as financial advice. The opinions expressed in this article are solely those of the author and do not reflect the views of The Crypto Basic. Readers should conduct their own research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.