- Uniswap Labs urges the SEC to withdraw its DeFi regulation plans, citing the Chevron decision and potential legal challenges.
- Coinbase's Katherine Minarik supports Uniswap's stance, arguing that the SEC's proposed rule change lacks legal strength.
Uniswap Labs, the developer behind the Uniswap decentralized exchange, has once more urged the U.S. Securities and Exchange Commission (SEC) in a letter to withdraw its plan to regulate decentralized finance (DeFi), pointing to a recent important Supreme Court ruling.
The company has argued that according to the Chevron decision, courts no longer need to disagree with federal agencies in interpreting unclear laws.
They suggested that the SEC would waste valuable resources trying to change the definition of "exchange," a move already likely to face legal challenges it might not withstand, even before the Chevron ruling.
Today @Uniswap Labs urged the SEC not to proceed with its proposed rulemaking that would dramatically and improperly expand the definition of an ‘exchange’ to include DeFi and more. 1/x
— Katherine Minarik (@MinarikLaw) July 9, 2024
The chief legal officer (CLO) of Coinbase, Katherine Minarik also shed light on the matter and explained that without Chevron Deference, the SEC’s interpretation isn't legally strong.
Minarik wrote in a post on X (formerly Twitter):
“Both the SEC and the industry have better ways to spend their resources than in litigation over an unlawful rule.”
Since April 2023, the SEC has suggested broadening the definition of an exchange under the 1934 Exchange Act to include crypto participants in DeFi. Uniswap has opposed this proposal.
In April, Uniswap received a Wells notice from the Enforcement Division of the SEC, notifying that the SEC plans to recommend legal action against the crypto exchange.
Edited by Harshajit Sarmah
