Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: KryptoBull on April 13, 2024, 03:24:06 AM
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The SEC is known to be an agency that is not sympathetic to crypto, and the SEC wants to regulate the crypto market. In the past, the SEC has sued centralized organizations such as Coinbase, Binance, Kraken, and Ripple, but recently the SEC has intended to sue UniSwap - the most popular DEX in the crypto market [1]. I think the SEC will soon file a lawsuit in the near future, the chance of UniSwap successfully negotiating is not high, and UniSwap Labs has also confirmed that it will fight the SEC.
I don't think the SEC can easily win this lawsuit: UniSwap was developed by Uniswap Labs but has no central authority to manage it, meaning it is very difficult for the SEC to identify who to sue. At the same time, UniSwap is just a protocol that connects liquidity providers and users, UniSwap does not store user assets and does not provide investment contracts.
In addition, UniSwap has been operating since late 2018 and has never encountered any legal problems. However, the recent tokenomics update with the proposal to share UniSwap revenue with UNI stakers [2] could lead to UNI being accused by the SEC of being a security. I have also thought about this, but it is not easy to conclude this using the Howey Test [3].
Since UniSwap is the leading DEX in the crypto market and most other DEXs or DeFi protocols share similar characteristics with UniSwap, if the SEC wins this lawsuit, it will set a precedent for the SEC to attack the entire DeFi ecosystem. This could have a significant impact on the future of the crypto market as DeFi is at its core. Conversely, if UniSwap wins, the SEC will not be able to touch DeFi and many other crypto projects in the future.
I have strong faith that Uniswap will prevail against the SEC. My only concern is financial. With its massive war chest, Ripple has been able to battle the SEC for four years and spend hundreds of millions of dollars. I'm unsure if Uniswap can do the same, given that Uniswap Labs' annual revenue is estimated to be only 17.2M USD [4]. In the event that it becomes truly necessary, I hope that the Ethereum Foundation, major crypto companies, and the community can provide financial support to Uniswap.
I would like to know your opinion on this issue:
- Is UNI token a security after the tokenomics update?
- Can UniSwap Labs win this lawsuit?
- Will the outcome of the lawsuit have a positive or negative impact on DeFi and the crypto market?
References:
[1] The SEC’s Suit Against Uniswap Is an Opening Attack Against DeFi (https://www.coindesk.com/consensus-magazine/2024/04/11/the-secs-suit-against-unswap-is-an-opening-attack-against-defi/)
[2] Uniswap's UNI Gains 20% as Token Reward Proposal Inches Closer to Approval (https://www.coindesk.com/markets/2024/03/06/uniswaps-uni-gains-20-as-token-reward-proposal-inches-closer-to-approval/)
[3] Does Crypto Pass the Howey Test? (https://www.investopedia.com/does-crypto-pass-the-howey-test-8385183)
[4] 2023’s top 5 DeFi protocols by revenue (https://blockworks.co/news/top-defi-protocols-by-revenue)
Note:
- My opinion has been presented in a topic, on BitcoinTalk forum (https://bitcointalk.org/index.php?topic=5492617).
- This topic on AltcoinsTalks forum has included a minor change in the way my opinion is presented.
- This statement is to avoid accusations of plagiarism.
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- Now, UNI (uniswap) is what they are staying with; this Dex platform also has a big market cap, right? So I think this is another long battle between Uniswap and the US government, if I'm not mistaken, right? I rarely use it either.
I have already used it, but the transaction fees are too high, to be honest, because it is under the EC20 network. So that's probably what happened.
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So they done with CEX Now they entering DEX.
I guess with hype around the crypto world, they are getting desperate. Well be buying uni token since yesterday. Doesn't hurt to accumulate a coin that's been oversold.
I would say not really an opportunity for defi but for investors to buy at a cheaper rate. Let's see how it plays out, Hopefully it doesn't drag on like XRP.
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It depends on how serious the SEC is in attacking Uniswap and the evidence they have against it. If the purpose is to reach a settlement, the case will end quickly, but if the legal debate continues, it will most likely take a few years before we see a final result.
In general, Defi defines itself as decentralized finance, and if the government can stop it, it is definitely centralized.
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A massive problem keeps emanating from one angle, which is from the SEC. They don't seem to get tired; they always want to be in the news. From the post I shared a day ago where I discussed "What challenges do cryptocurrencies face in achieving mainstream adoption?", government regulation happens to be number one. Several lawsuits have been filed against exchanges and crypto projects, and Uniswap has become the latest victim. They always want to put projects under them, thereby overseeing their activities.
It depends on how serious the SEC is in attacking Uniswap and the evidence they have against it. If the purpose is to reach a settlement, the case will end quickly, but if the legal debate continues, it will most likely take a few years before we see a final result.
In general, Defi defines itself as decentralized finance, and if the government can stop it, it is definitely centralized.
You will be shocked to find out that the SEC does not have enough concrete evidence to warrant suing Uniswap. The SEC only works with what little evidence they have, thereby thinking it would be enough to put someone in trouble. Let's also not forget that the ETH ETF is still pending due to several matters being raised. We might experience long delays just like with the spot Bitcoin ETF.
Link to my post: https://www.altcoinstalks.com/index.php?topic=320369.msg1539051#msg1539051
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Since UniSwap is the leading DEX in the crypto market and most other DEXs or DeFi protocols share similar characteristics with UniSwap, if the SEC wins this lawsuit, it will set a precedent for the SEC to attack the entire DeFi ecosystem. This could have a significant impact on the future of the crypto market as DeFi is at its core. Conversely, if UniSwap wins, the SEC will not be able to touch DeFi and many other crypto projects in the future.
I would like to know your opinion on this issue:
- Is UNI token a security after the tokenomics update?
- Can UniSwap Labs win this lawsuit?
- Will the outcome of the lawsuit have a positive or negative impact on DeFi and the crypto market?
This lawsuit, if it takes place, will be quite significant, even bigger than the SEC's case against Ripple, as the XRP token itself was previously considered centralized and subject to Ripple's control. UniSwap, on the other hand, is the market's largest and most well-known DEX. The outcome of this lawsuit could truly reshape the future of DeFi and alter the SEC's relationship with crypto.
1. I don't think UNI is a security because there is no investment contract, but the SEC could use the revenue-sharing mechanism to view it as a form of dividend distribution.
2. Everything depends on UniSwap's efforts in both argumentation and finance. I hope the lawsuit will not happen as we will have a new SEC chairman after the presidential election. The most interesting thing could be that Gary Gensler will sue UniSwap before leaving the SEC, similar to what Jay Clayton did to Ripple in 2020.
3. If UniSwap wins against the SEC, we will have a positive impact on the future of the crypto market in the US in particular and globally in general. The SEC will lose its reputation, will not have enough grounds to sue other DEXs and DeFi protocols in the market, a large part of the crypto market will be safe, investors will be confident and invest more money in crypto.
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So they done with CEX Now they entering DEX.
I guess with hype around the crypto world, they are getting desperate. Well be buying uni token since yesterday. Doesn't hurt to accumulate a coin that's been oversold.
I would say not really an opportunity for defi but for investors to buy at a cheaper rate. Let's see how it plays out, Hopefully it doesn't drag on like XRP.
It's surprising to hear this news, the SEC is again suing non-centralized DEXs, oh this looks like it controls everything.
The SEC will definitely go after platforms that already have high value by investigating existing mistakes even though they are clearly decentralized, but the government will be more powerful than they think.
I want to know how Uniswap will resist, which is the first time DEX has been disturbed by the government.
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this is there the governments will really block websites such as Uniswap if they have to regulate the decentralized markets. they were trying to do it on CEX and i think they might succeed to convince governments this time.
how about the CEO off UNI Hayden Adams, isn't he known to the public and be the one to be sued by the SEC?
if SEC will succeed to UNI however, then none of the DEX is safe.
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If I may ask, is there any identity behind the uniswap? If yes then the government would have their way but if no I think it would be very difficult for the government that shit.
DEX I think is pseudo identity in nature and as such should be very difficult for the government to attack but rather only threat of closing or blocking the website but I think that would be difficult for them to do.
So far to the best of my knowledge of what have been happening on the Crypto space for some years now with the SEC is that they are just here for their own share of the cake. That is why they are always after the big fishes because they know they can ake out something tangible and meaningful from them.
It has always been their nature to run after big names in the industry and I would not be surprised casinos would be their next target.
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one piece of surprising information, hope uni wins this case, and doesn't drag on like XRP,
Sometimes I wonder what's wrong with the SEC that always interferes with crypto getting people's attention. and makes crypto prices decline
Hopefully this case doesn't drag on because it will definitely do bad things to the coins they sell
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This lawsuit, if it takes place, will be quite significant, even bigger than the SEC's case against Ripple, as the XRP token itself was previously considered centralized and subject to Ripple's control. UniSwap, on the other hand, is the market's largest and most well-known DEX. The outcome of this lawsuit could truly reshape the future of DeFi and alter the SEC's relationship with crypto.
I hope the SEC will not sue UniSwap because the SEC also does not want to lose the lawsuit and damage its reputation. UniSwap is very different from Ripple, and if XRP is not a security, then UNI is unlikely to be a security either.
I think the SEC just wants to put pressure on the crypto market and win over UniSwap with time and money. This lawsuit could really slow down DeFi this cycle, and I don't know who would benefit if that happened.
one piece of surprising information, hope uni wins this case, and doesn't drag on like XRP,
Sometimes I wonder what's wrong with the SEC that always interferes with crypto getting people's attention. and makes crypto prices decline
Hopefully this case doesn't drag on because it will definitely do bad things to the coins they sell
I think the UNI token price will be heavily affected, at least until we have full information about the lawsuit. I am even worried that many CEXs will delist the UNI token as they did with XRP. The best-case scenario is that UniSwap Labs is seen as a brave user standing up for DeFi against the SEC's absurdity, then UNI token price will gain focus and money flow from crypto community and investors!
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You will be shocked to find out that the SEC does not have enough concrete evidence to warrant suing Uniswap. The SEC only works with what little evidence they have, thereby thinking it would be enough to put someone in trouble. Let's also not forget that the ETH ETF is still pending due to several matters being raised. We might experience long delays just like with the spot Bitcoin ETF.
Link to my post: https://www.altcoinstalks.com/index.php?topic=320369.msg1539051#msg1539051 (https://www.altcoinstalks.com/index.php?topic=320369.msg1539051#msg1539051)
So far, we do not know the list of charges, but I do not think that they will have difficulty issuing any regulations. Due to the lack of regulatory clarity, any charges such as managing an unregistered securities exchange, tax evasion, or aiding in money laundering would be acceptable. Does UNIswap have sufficient resources to deny these charges?
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I am even worried that many CEXs will delist the UNI token as they did with XRP. The best-case scenario is that UniSwap Labs is seen as a brave user standing up for DeFi against the SEC's absurdity, then UNI token price will gain focus and money flow from crypto community and investors!
If the key reason why the token is considered a security is that it gives 'revenue' to its token holders, maybe Uniswap can also look for other options to make their token more interesting for the market. That being said, profit sharing through staking is the norm for the market as of now, if they judge it as security based on that alone, then the market will be affected. It feels a bit absurd though, since staking has many forms, and disallowing people to profit from that will more or less kill any incentive for the community to participate in the network. New projects will probably move away from the US if they fail to find any way to monetize their network, since running their node is probably not feasible. CMIIW.
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- Is UNI token a security after the tokenomics update?
- Can UniSwap Labs win this lawsuit?
- Will the outcome of the lawsuit have a positive or negative impact on DeFi and the crypto market?
1. UNI is not a security, even though it can provide holders or stakers with returns, similar to the returns offered by projects using POS or by liquidity providers on DEX.
2. The lawsuit has not yet officially begun, and the SEC has not made any clear announcements about initiating a lawsuit against Uniswap, citing any reasons or demands. I think Uniswap will have the strength to win with the support of the community.
3. If Uniswap wins, it will be good for the community, similar to what happened when Ripple and Grayscale won against the SEC. Each victory will be a valuable precedent for the future if similar projects are also sued by the SEC.
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It depends on how serious the SEC is in attacking Uniswap and the evidence they have against it. If the purpose is to reach a settlement, the case will end quickly, but if the legal debate continues, it will most likely take a few years before we see a final result.
In general, Defi defines itself as decentralized finance, and if the government can stop it, it is definitely centralized.
If a team that creates something is publicly available and known, just know that investigation can come in anytime any day whether the it's centralized or decentralized. I think now we do better understand why Satoshi remained hidden till today, if he his around today and know by the government officials, I'm very sure that SEC is going to open a file of him about what Bitcoin has did and not and jailed him but he decided to remain anonymous which is good for Bitcoin otherwise regulations of Bitcoin would have been in excess by now.
Should we say for decentralization to succeed, yiu have to remain anonymous from people?
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I think now we do better understand why Satoshi remained hidden till today, if he his around today and know by the government officials, I'm very sure that SEC is going to open a file of him about what Bitcoin has did and not and jailed him but he decided to remain anonymous which is good for Bitcoin otherwise regulations of Bitcoin would have been in excess by now.
Yes, it seems that it is better for the developers of these currencies to remain in secret, especially if governments decide to become more strict, but let us see what will happen with Vitalik Buterin or any of the creators of cryptocurrencies.
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The SEC's attitude toward cryptocurrencies has never been positive. Whenever any project make bullish in the market, this agency destroys its reputation by suing that project. However, the SEC could not find any evidence that would incriminate UNI swap Dex. But because of their lawsuits, a large portion must be spent fighting against the charge. To date the SEC has kept a few cases where they could not provide any evidence. Ripple will fail to prove whatever allegations they make against Binance and the same will be the case with UniSwap.
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They aim to completely regulate the crypto space, and suing the centralized exchanges and crypto projects alone won't make that happen, so they are surely going to take further steps, and if I remember correctly, a few months back I read somewhere that they are aiming to start attacking decentralized platforms soon, so it wouldn't be surprising if they do so because they want regulation for all and decentralized platforms support decentralization which means no regulation for their customers.
Whether the case with UniSwap will be long or not, but if they start attacking decentralized platforms, they wouldn't stop just here, they will sue UniSwap and then they will start going to other platforms until it is done on all of them.
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Hello, They aim to completely regulate the crypto space, and suing the centralized exchanges and crypto projects alone won't make that happen, so they are surely going to take further steps, and if I remember correctly, a few months back I read somewhere that they are aiming to start attacking decentralized platforms soon, I lost some bitcoin months ago and was quite unhappy about it until I was made aware of White Express Recovery company, who helped me recover it. Not all, but around 88% of it has been retrieved. If you have similar problems, you can contact them at whiteexpressrecovery . com
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The SEC's attitude toward cryptocurrencies has never been positive. Whenever any project make bullish in the market, this agency destroys its reputation by suing that project. However, the SEC could not find any evidence that would incriminate UNI swap Dex. But because of their lawsuits, a large portion must be spent fighting against the charge. To date the SEC has kept a few cases where they could not provide any evidence. Ripple will fail to prove whatever allegations they make against Binance and the same will be the case with UniSwap.
I am highly skeptical of the SEC's motives in suing UniSwap. Is it because the DeFi trend is growing so strongly and creating a DeFi summer similar to 2020? Does the SEC really want to protect investors in this market? Is the SEC being used by someone to stifle the growth of the crypto market? The SEC is attacking both CEXs and DEXs, I don't understand the SEC's purpose. I hope we will soon know the details of the lawsuit the SEC wants to bring, then pro-crypto lawyers will share their views and we will support UniSwap together.
Four years ago, we doubted the nature of XRP, but now we believe that UNI is not a security. CEXs are still holding UNI trading pairs, they have not delisted UNI, they are supporting UniSwap.
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When SEC sue anything, the value reduces. Although, it might be a good opportunity for DeFI as you've said but it will affect Defi at first. We all know what SEC suing causes although, Im able to get more UNI with my Meme coins pair on Bitget smart portfolio but I still don't see this SEC suing as a good one.