Uniswap’s price tanks 10% as team SEC promises to fight risk.

Uniswap (UNI), the token of the decentralized exchange of the same name, dropped to a six-week low after Uniswap received a notice of suit from US regulators – saying it was “ready to fight back”.

UNI fell 10% in the hour from $11.21 to $10 after Uniswap said it had received a notice from the Securities and Exchange Commission of Wales, indicating that the regulator was planning enforcement action.

UNI is currently trading at $9.66, the lowest point since late February, according to Cointelegraph Markets Pro.

“I'm not surprised. I'm just frustrated, frustrated, and ready to fight,” Hayden Adams, founder of New York-based Uniswap Labs, wrote in an April 10 X post. “This fight will take years [and] It could go all the way to the Supreme Court.

Uniswap did not share the exact content of Wells' announcement, but in a blog post about the announcement that UNI is not a security and does not meet the legal definitions of a US securities exchange or broker.

An SEC spokesperson told Cointelegraph that it does not comment on “the existence or nonexistence of a possible investigation.”

Bill Hughes, Consensus' senior counsel and director of regulatory affairs, wrote in the X: SEC staff should be acquitted by the agency's five commissioners — including Chairman Gary Gensler — in the first instance.

“We all know the bench wants to impeach them, and no two commissioners agree and no two disagree,” Hughes wrote. “So wool is a foregone conclusion, but no clothes yet.”

It is “highly suspicious” that the SEC is targeting UNI holders or protocol users, urging the “frustrated” to take a breath and calm down.

John Reed Stark, the former SEC chief of Internet enforcement, wrote in X a Wells' announcement that the receiver will have an opportunity to argue why the commissioners should reject the case.

The notice to Uniswap was “unsurprising” and “always surprising,” said Wells' notice receivers, who “will fight back by throwing rocks at the SEC with what Uniswap seems to have started with a nasty/disgusting public relations campaign.”

“Any SEC lawyer would agree that responding to Wells by criticizing the SEC, calling them names, etc. is a weak, dangerous and losing strategy.”

Stark says Uniswap is abusing the SEC's authority and implementing the “SEC's anti-innovation enforcement paradigm,” reversing a “tired, anemic, outdated and failed monologue.”

“Expect the SEC's enforcement staff to file a broad and robust federal complaint that will likely survive a typical takedown motion, win a typical summary judgment motion, and prevail in other litigation cases that follow,” he said.

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Former Delphi Labs general counsel Gabriel Shapiro wrote on X that his hunch is the SEC “wins with UNI on securities issues,” but loses if Uniswap is said to be a securities exchange.

Paul Grewal – the legal head of Coinbase, which is sued by the SEC – agrees with Shapiro and believes that the SEC cannot dispute the claim if Uniswap is said to be a broker.

He pointed to a judge's decision last month in a lawsuit against the SEC, Coinbase, which ruled that the SEC failed to charge that Coinbase conducted brokering activities through the decentralized Coinbase Wallet.

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