By
Steve Muchoki
June 14th, 2024
On Tuesday, Uniswap Labs responded to the SEC’s Wells Notice in a comprehensive 43-page submission, urging the regulator not to pursue legal action against the platform.
The native token of Uniswap, the largest decentralized exchange, UNI, soared almost 4% in the past 24 hours, reaching a daily high of $9.69, up significantly from the weekly low of $7.61.
The price of UNI has been up 40% in the past seven days, followed by a massive 88.3% surge in the last year. The digital asset’s market cap stands at $7.25 billion, making it the 21st-largest cryptocurrency by market share. UNI’s trading volume stands at $291 million, a 12% decrease in the last 24 hours.
The data from DefiLlama shows that the total value locked (TVL) for the decentralized exchange stands at $6.29 billion, an 18.99% increase in the last week. Uniswap’s cumulative fee has been increasing, yet it has not surpassed the all-time record of $251 million set in May 2021.
Additionally, the chart provided by TradingView below indicates that the relative strength index (RSI) for the UNI/USDT pair currently reads 68.92, and the pair is about to enter the overbought region. The buyers are currently in control of the UNI price trajectory.
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Photo: TradingView
- It is important to note that the native token of the Uniswap exchange could be a major reason for the platform’s response to the United States Securities and Exchange Commission (SEC) over the Wells Notice issued by the regulator last month.
Uniswap Tries to Reason with the SEC
On Tuesday, Uniswap Labs responded to the SEC’s Wells Notice in a comprehensive 43-page submission, urging the regulator not to pursue legal action against the platform.
Interestingly, Uniswap asserted that it does not operate as an exchange, challenging the SEC’s jurisdiction over its activities. The DEX noted that the regulator does not have jurisdiction over Bitcoin, Ether, or stablecoins, which constitute the primary assets traded on the exchange.
Uniswap Labs argued that the tokens traded on its platform are not securities but are alternative assets. The DEX further highlighted its decentralized nature, adding that it has no control over the users’ accounts and has no record of user data.
“Bringing this case would encourage Americans to use harder-to-regulate foreign interfaces and trading protocols, while also discouraging future innovators from attempting to foster new ideas that bring much-needed competition and innovation to financial and commercial markets,” said the exchange.
The firm asked Congress to introduce a proper regulatory framework for the crypto industry, adding that the SEC cannot use regulation through enforcement tactics in every case.
Uniswap supporters on X noted that the UNI token has been performing quite well since the SEC’s reversal on Ethereum exchange-traded funds (ETFs). An analyst stated that a breakout above $10 could signal a further surge in the price of the cryptocurrency, leading it to retest its yearly highs of around $17.