According to Cointelegraph: The token for the decentralized exchange Uniswap has plummeted to a six-week low, dropping 10%, following the announcement from Uniswap Labs of a potential lawsuit from U.S. regulators. The company has expressed its readiness for a legal battle.
Uniswap received a Wells notice from the Securities and Exchange Commission (SEC), which signifies that the regulatory body is considering enforcement action. The token price fell from $11.21 to $10.
In response to the notice, Uniswap Labs founder, Hayden Adams, has voiced his annoyance and disappointment but also his readiness to battle the proposed action in court.
While the details of the Well notice haven't been shared, Uniswap Labs maintained in a blog post that the UNI token does not meet the U.S. legal definitions of a securities exchange or broker.
Opinions among legal experts remain divided, with estimates of a likely lawsuit approval by the SEC based on the individual stances of its five commissioners. Senior counsel Bill Hughes, however, has reassured that it is highly unlikely that the SEC will target UNI holders or protocol users.
Critics also voice concerns over Uniswap Labs' confrontational approach to the SEC. Former SEC Internet Enforcement Chief, John Reed Stark, suggests that denouncing the SEC in a public relations campaign as Uniswap seems to have begun might be a risky strategy.
