Uniswap CEO: The battle with the SEC will consolidate DeFi’s financial status

Author: David C, Bankless; Translator: Tao Zhu, Golden Finance

Uniswap is warned by the SEC for suspected securities violations in an absurd regulatory environment.

"The SEC is trying to shut down cryptocurrencies," Hayden Adams told Bankless.

In an interview, the head of Uniswap Labs painted a regulatory landscape in which the existence of DeFi is under threat. However, Adams remained resolute, viewing the lawsuit as both a challenge and an opportunity to cement DeFi's recognized place in financial history.

The SEC is fighting a battle with cryptocurrencies, but it has been losing. But their efforts to punish cryptocurrency developers, such as those of Coinbase and Uniswap, show that they want to redefine the concepts of securities and securities brokers. That’s a power they don’t have, and Adams said Uniswap is ready to fight the action, even if it means appealing it all the way to the Supreme Court.

The Future of DeFi in the U.S.

Echoing the early days of the internet, Adams hopes there will be a regulatory “safe harbor” to foster DeFi’s growth in the U.S., warning that strict action could stifle innovation and drive entrepreneurs overseas, leading to similar problems as FTX.

Adams stressed that unlike traditional financial systems, which apply regulation from the outside, Uniswap and Ethereum “have security coded into the code.” Uniswap intends to highlight these built-in safeguards during the legal process and prove to the court that decentralized platforms can police themselves better than traditional financial regulatory frameworks.

Adams aims to show how this model can protect investors and promote fairer and more efficient markets, thereby reducing the need for active regulatory intervention. He plans to use the court case to advocate for decentralized finance’s unique ability to self-regulate and protect participants.

Adams believes that just as the Internet democratized access to information and provided new opportunities for people, DeFi will do the same for the financial industry, providing people with “a system that allows them to truly own their own assets and get the same opportunities that banks get with other people’s money.”

While the U.S. Securities and Exchange Commission (SEC) has been working to expand its regulatory reach and exert pressure in the crypto space, Uniswap has been working to carefully utilize the existing framework.

Uniswap has already taken an active role in building bridges with policymakers, launching initiatives such as the DeFi Education Fund to work with politicians and help DeFi thrive. Although the road ahead is challenging, he believes that a win will prove Uniswap right and set a strong precedent for the future of DeFi.