SEC drops Uniswap case as crypto rules face major shift

The SEC ends its investigation into Uniswap, boosting UNI token trading, as CEO Hayden Adams calls for new crypto regulations separate from traditional finance.

The SEC has officially dropped its investigation into Uniswap Labs, leading to a short-lived spike in the UNI token's price. Despite ongoing bearish market conditions, this news marks a positive moment for the decentralized exchange, which recently launched its v4 upgrade and introduced the Unichain mainnet.

Uniswap CEO Hayden Adams welcomed the decision, arguing that traditional financial regulations do not apply to decentralized finance (DeFi) and that new laws should be developed to accommodate the sector. With another regulatory case dismissed, the push for clearer crypto regulations is gaining traction.

The SEC had initially targeted Uniswap Labs with a Wells Notice last year, accusing it of operating as an unregistered broker, exchange, and clearing agency, as well as issuing unregistered securities. This investigation was considered a major legal battle for DeFi.

However, after a year-long probe, the SEC dropped the case without enforcement action. The crypto industry rallied behind Uniswap during this period, viewing the outcome as a significant victory.

“This is a huge win—not just for Uniswap Labs but for DeFi as a whole. I appreciate that the new SEC leadership is taking a more cooperative stance, and I’m eager to work with Congress and regulators to develop policies that actually make sense for DeFi,” Adams stated.

The quiet resolution of the Uniswap case reflects a broader shift at the SEC since President Trump’s new term began last month. The Commission has been backing away from crypto-related enforcement actions at a rapid pace. In recent days, it has dropped cases against Coinbase, Opensea, and Robinhood, indicating a changing regulatory approach.

With the investigation closed, UNI token saw a momentary price surge, though its value has dropped 30% over the past month. Even the launch of Uniswap v4 and Unichain failed to make a significant impact on price trends. However, following the SEC’s announcement, UNI’s daily trading volume jumped by over 140%, according to CoinMarketCap data.

Moving forward, this decision could signal a new era for crypto regulation. In his remarks, Adams stressed that “decentralized technology and self-custody are fundamentally different from traditional finance and should be regulated separately.” His stance is widely shared in the crypto industry, and regulators are increasingly open to constructive discussions on the subject.

The SEC’s shift in enforcement strategy suggests that many cases pursued under former Chair Gary Gensler’s leadership are now being reconsidered. However, while the Commission appears to be stepping back, it also raises the urgency for crafting a new legal framework that accommodates the evolving crypto landscape.

Crypto now has a real opportunity to help shape its own regulatory future, but achieving this will require active participation in developing balanced and fair regulations.