The market cap of UNI token has experienced a 17% loss following recent news. The token is currently trading at $5.54 million, according to data from CoinMarketCap.
Uniswap Labs founder Hayden Adams expressed frustration and readiness to contest the SEC’s actions, anticipating a lengthy legal battle that could potentially reach the Supreme Court. Bill Hughes, Consensys’ Senior Counsel and Director of Regulatory Matters, discussed the process required for the SEC to officially file a lawsuit.
He noted that approval from the agency’s five commissioners is necessary. Hughes also indicated that a lawsuit from the SEC is likely, but emphasized that it has not been filed yet.
Hughes advised the community to remain calm, emphasizing the unlikelihood of the SEC targeting UNI holders or users directly. However, former SEC internet enforcement chief John Reed Stark criticized Uniswap’s public reaction to the Wells notice as counterproductive.
He highlighted that aggressive defense strategies against the SEC typically fail. The situation reflects ongoing tensions between the SEC and the cryptocurrency industry.
Recent rulings have varied in favorability to the SEC, but Uniswap’s defense remains uncertain given the unique nature of decentralized finance and its past legal victory in a class-action lawsuit. A recent legal decision in the SEC’s case against Coinbase has highlighted distinctions in the regulatory treatment of decentralized services, which may bolster Uniswap’s defense despite concerns over its control over certain platform features.