The main financial regulator in the US has concluded its investigation into a crypto exchange, reinforcing the idea that there has been a significant shift in the regulation of decentralized finance (DeFi) in the country.
The case involved the Securities and Exchange Commission (SEC) and the decentralized crypto exchange Uniswap Labs, with the investigation lasting over a year. Uniswap faced allegations of functioning as an unregistered broker exchange and clearing agency while issuing unregistered securities.
This decision comes shortly after the SEC also dismissed its case against another crypto exchange, Coinbase, and the crypto operations of the online trading app Robinhood, marking a notable change in the agency’s approach to DeFi since the inauguration of Donald Trump.
Under the previous leadership of Gary Gensler, the SEC took a cautious stance towards the crypto sector. It was only after a court ruled in favor of several crypto firms that the agency approved various crypto-linked investment funds, long after similar actions had been taken by other countries.
Gensler stepped down after Trump’s election, with Mark Uyeda now serving as the acting head of the SEC. The decision to drop the case against Uniswap was met with approval by its CEO, Hayden Adams, who emphasized the need for distinct regulatory frameworks for DeFi compared to traditional finance.
Adams hailed the outcome as a significant victory for Uniswap Labs and DeFi overall, stating, “It reaffirms what we’ve said all along: that decentralized technology and self-custody are inherently different from centralized, intermediated systems they aim to replace.” He expressed optimism about collaborating with Congress and regulators to create sensible policies for DeFi.
In the wake of this decision, Uniswap’s UNI Token saw a short-term increase in trading volume. However, Bitcoin, the leading cryptocurrency globally, has dropped to its lowest level in nearly four months, coming soon after reaching its all-time high as investors remain uncertain about the future trajectory of cryptocurrencies and DeFi.