SEC Drops Investigation Into Uniswap, Signalling Shift in Crypto Regulation

 

In a significant development for the decentralized finance (DeFi) industry, Uniswap Labs announced that the U.S. Securities and Exchange Commission (SEC) has officially closed its investigation into the company without pursuing any enforcement action. The decision comes as part of a broader shift in the SEC’s approach to cryptocurrency regulation following the resignation of former Chair Gary Gensler.

 

End of a Three-Year Legal Battle

The investigation into Uniswap Labs, the creator of the world’s largest decentralized exchange (DEX), dates back to 2021 and escalated in April 2024 when the firm received a Wells Notice—a formal warning from the SEC indicating potential legal action. Under Gensler’s leadership, the SEC aggressively targeted crypto firms, arguing that most digital assets function as unregistered securities.

However, the regulatory climate shifted after Gensler’s departure in early 2025. His resignation paved the way for a new leadership team, which has since reassessed multiple high-profile cases against crypto companies.

“This investigation took over three years, forcing us to waste incredible amounts of time and millions of dollars,” said Uniswap Labs founder Hayden Adams in a statement on X (formerly Twitter). “It also had a personal impact—federal investigations are violating and stressful to the point where there is a saying among lawyers that ‘the investigation IS the punishment.’ That shouldn’t be the price of innovation in the U.S.”

 

 

A Broader Shift in SEC Enforcement

The SEC’s decision to close its Uniswap probe is not an isolated event. The regulator has recently dropped cases against other major crypto firms, including NFT marketplace OpenSea, crypto trading platform Robinhood, and leading exchange Coinbase.

Industry analysts suggest that the SEC’s stance is softening under the new administration, which has emphasized a more collaborative approach to regulating digital assets. In recent weeks, the SEC’s crypto task force has engaged with industry leaders to discuss new regulatory frameworks that support innovation while ensuring investor protection.

“We appreciate that the SEC’s new leadership is taking a close look at the pending enforcement investigations and litigations across our industry, not just our own,” Uniswap Labs stated. “This conclusion is not only welcome and just but also a relief for the broader DeFi community of builders, users, and developers working toward a better financial system for all.”

 

Market Reaction and Future Implications

Following the announcement, Uniswap’s native token, UNI, briefly surged from $7.87 to $8.28 before stabilizing around $8.11. Despite the positive news, UNI remains down approximately 12% for the week due to broader market fluctuations.

While the SEC’s decision is being hailed as a victory for DeFi, some industry observers warn that it does not necessarily guarantee regulatory clarity for decentralized protocols moving forward. Legal experts point to past rulings, such as the 2023 Risley v. Uniswap Labs decision, where a judge determined that decentralized smart contract-based platforms do not fall under the SEC’s jurisdiction. However, without formal legislation, the regulatory landscape remains uncertain.

For now, Uniswap and the broader DeFi sector can breathe a sigh of relief. The closure of the SEC’s investigation marks a pivotal moment in the ongoing regulatory debate over decentralized financial systems.

With the winds shifting in favour of crypto innovation, market participants will be watching closely to see how the SEC’s evolving stance impacts future enforcement actions—and whether lawmakers will finally step in to provide much-needed legal clarity.