The Uniswap battle with the SEC resulted in a 10% drop in Uniswap price

Uniswap price dropped 10% to US$10 in an hour after dropping to its lowest level in six weeks following Uniswap's announcement that it was "prepared to fight" after a Wells Notice by United States SEC. Uniswap is the token for a decentralized exchange called the "Uniswap" token. The SEC issued a Wells notice on Uniswap, which is a notice that the regulator intends to take enforcement action. 

The Securities and Exchange Commission (SEC) issued a Notice of Intent to File a Complaint against Uniswap. UNI currently trades at US$9.272 on Tradingview, down from its recent high of US$11.21.

"I am not shocked. I am just angry, frustrated, and prepared to take the fight to the courts," said Hayden Adams, CEO and founder of Unisawap Labs, based in New York City. "The battle is likely to drag on for years, and may even reach the Supreme Court," he added.

Unisawap did not disclose the specifics of Wells' notice but wrote a blog post about it on April 10 on X. In the blog post, Uniswap asserted that UNI is not a security and that it does not meet the United States legal definitions of a securities exchange or a broker. The Securities and Exchange Commission (SEC) said in a statement that it does not comment on the "possibility or absence" of an investigation.

On X, Consensys senior counsel/regulatory matters director Bill Hughes explained that SEC staff must first obtain consent from the agency's five members, including chair Gary Gensler, to bring a lawsuit. "We all know the Chair wants to take them to court, and two of the five members won't vote against it, and two will vote against it," Hughes wrote.

So a lawsuit is likely, but there is no lawsuit yet. He also encouraged those who were concerned to "calm down" because it was "highly unlikely" that the SEC would go after holders of UNI or protocol users.

John Reed Stark, a former SEC Internet Enforcement chief, said on X that "a Wells notice allows the recipient to explain why the commissioner should reject a recommended lawsuit." He added that the Wells notice to uniswap "wasn't a surprise" and that he was always surprised when recipients of Wells notices "took the high road" by attacking the SEC with "ignorant/inappropriate" PR campaigns, such as the one that appears to have been launched by Unislap. Stark said that Uniswap was "recalling a tired, weak, outdated, and ineffective monologue" accusing the SEC of using its power and "lambasting" the SEC's "anti-innovation enforcement paradigm."

The SEC Enforcement staff will likely move aggressively and file a large and thorough federal complaint that is likely to withstand the typical motion to dismiss and win on most other matters that follow, he added. Gabriella Shapiro, former general counsel for Delphi Labs, predicted on X that the SEC "will prevail on securities issues involving UNI, but will lose on the argument that UNiswap operates as a securities exchange."

In a statement, Coinbase's chief legal officer, Paul Grewal, concurred with Shapiro. Grewal wrote that if the SEC alleged that Uniswap was a broker, "it would not be able to support its claim." Grewal pointed to a ruling last month by a federal judge in the SEC's suit against Coinbase, in which the judge ruled that the SEC did not prove that Coinbase engaged in brokerage activity via its decentralized crypto wallet, Coinbase Wallet.

Price Analysis

Uniswap Price Analysis Uniswap has a Current Price of US$9.272 and a Relative Strength Index of 25.17, indicating the coin is oversold. The Support level value is around US$8.259, and the Resistance is around US$12.

Coindataflow predicts that UNI's value in 2025 is expected to increase by 739,35% to US$77,80 if the market conditions are favorable. The price is expected to increase from US$77,80 to US$18,35 in 2025. In 2030, UNI's value is projected to increase by 613,46% to US$66,13 if market conditions are favorable, the price is expected to rise from US$66,13 to US$19,23 in 2030.