SEC Ends Investigation Into Uniswap Labs with No Enforcement Action

Highlights:

• The SEC closed its case against Uniswap Labs with no action after allegations of operating as an unregistered exchange.
• The SEC is changing its crypto regulation approach by ending investigations and working with firms to create better rules.
• Uniswap launched Unichain, a Layer 2 blockchain on Ethereum with fast transactions and a new revenue model for its ecosystem.

The U.S. Securities and Exchange Commission has closed its investigation into Uniswap Labs without taking enforcement action. The probe began in April after the SEC issued a Wells Notice stating that Uniswap operated as an unregistered broker and exchange. The agency also alleged that Uniswap Labs issued unregistered securities.

In April, the SEC issued a Wells notice claiming that Uniswap Labs operated as an unregistered broker, operated an exchange, and issued an unregistered security

As of yesterday, that investigation has officially been closed, and the SEC is taking no enforcement action

This is a…

— Uniswap Labs 🦄 (@Uniswap) February 25, 2025

Uniswap Labs officially denied the allegation and stated that they had fulfilled all requirements. The company has reacted positively to the SEC decision and has declared that it will remain transparent in its operations. In an official statement, Uniswap Labs said that the technology they build will make markets more transparent and accessible.

The SEC took this step after similar enforcement actions against other crypto businesses. The SEC decided to drop investigations into Coinbase, Robinhood, and OpenSea without taking any additional steps. The SEC’s recent decisions show a change in approach to crypto regulation.

SEC’s Approach Shifts with New Leadership and Crypto Task Force

The decision of the agency to end its investigation of Uniswap represents a change in approach to how it addresses crypto cases. The agency has evolved its enforcement methods under Acting Chairperson Mark T. Uyeda.

Commissioner Hester Peirce, a longtime advocate for better crypto rules, is leading a Crypto Task Force. The task force is working with industry leaders, and it aims to come up with clear rules that will govern the industry.

Crypto leaders have applauded the recent moves by the SEC, and they believe that the Biden regime lacked defined legal principles. The agency faced a lot of criticism because it relied mostly on enforcement without establishing clear paths for compliance.

Uniswap Launches Unichain and Expands With Version 4 Deployment

Uniswap Labs recently introduced Unichain, a Layer 2 blockchain built on Ethereum. This new blockchain aims to improve the speed of transactions and improve efficiency. Unichain will reduce costs and offer block times of one second.

Uniswap Labs launches Layer-2 ‘Unichain’

Users and developers can build and use DeFi applications and tools on Unichain.
Nearly 100 crypto protocols, including Uniswap, Circle, Coinbase, Lido, and Morpho, have confirmed their participation in the network.@Uniswap… pic.twitter.com/8Uw6EOtoDO

— Adhi Mevin (@Adhi_Mevin) February 17, 2025

The platform is also creating a new revenue model. It allows Uniswap Labs and UNI token holders to earn nearly $500 million annually. Unichain generates revenue by repurposing fees that normally flow to Ethereum validators. The fees enable Unichain to maintain financial stability inside its Uniswap ecosystem.

In addition to its expansion, Uniswap has launched Version 4 as part of its ecosystem growth. The updated platform will empower developers to adjust trading functions through customizable “hooks.” The initiative has received support from 800 developers who have built 150 distinct hook interfaces.

Unichain will face competition in its market entry from many existing Layer 2 blockchain solutions. Ethereum controls the decentralized finance market share with $54.6 billion TVL. Other Layer 2 solutions, such as Base, Arbitrum, and Polygon, are competing to secure a portion of the market sector. Base has $3.01 billion in total value locked, while Arbitrum has $2.72 billion.