Hello Friends,
Good day to you. I hope the day is going well for you and it's going well for me too.
Crypto is an unregulated market but in many countries, there are things in progress to bring regulation. This market is more on decentralisation which means it is not controlled by any centralised business entity but the government is not in favour of this. The US Exchange Authority is trying to prove that most of the coins in Crypto markets are securities and securities cannot be treated like this in the Crypto market. A similar lawsuit was filed against Ripple a few years back and the partial win has been achieved by the Ripple labs.
Now decentralised space is also the target of the Security and Exchange Commission. People are moving to decentralised protocols from centralised crypto exchanges but this is also in the target list of SEC. There is big news that Uniswap has received a notice from the SEC. I did some research on Uniswap to find out what this platform is all about. This is one of the leading decentralised crypto exchanges where we can trade crypto and also we can invest in certain pools and forms to earn crypto through the investment. This is a very popular name among the crypto communities and people rely on this platform. It is decentralised so there is no need to follow the KYC process and anyone can participate using non-custodial wallets.
As for the latest news update this notice has been served with the region that this platform is dealing in securities. The Uniswap team has updated on social media that they are ready to fight the case as they are not dealing with securities instead these coins are a digital copy. Uni is the native token for Uniswap and after this news turbulence can be seen on the coin price in the market. Usually, it happens because when the environment is negative for any project then a similar impact can be seen on the coin price in the market so it is not a new impact.
Similar actions have already been taken by the SEC which is the government body against some crypto exchanges. Some exchanges like Coinbase, Binance, Kucoin etc have already gone through such legal actions by the SEC and now Uniswap is the first defi exchnage deal with this legal notice. Somehow it looks like the SEC is trying to target these companies as they are growing faster. Crypto is fast fast-growing space where if the company creates great products for the community it can surely grow much faster than the other sectors. Possibly sec is trying to put a speed breaker on this market so that the growth can be slower. S E C was not in favour of Bitcoin spot E T F approval in the beginning but later they did and now Ethereum is the next one in the queue for approval.
Conclusion
Uniswap decentralised exchange has got a fantastic user base and they are supporting the protocol. I have seen multiple posts on Twitter talking about these legal notices and uniswap so hopefully, things will not go bad for the company as what they are building is helping alert the Crypto community to grow worldwide. We just can't predict what is going to happen but surely if we can support the uniswap through social media it can be a good help for the protocol to deal with SEC.
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