The XRP community has weighed in on the potential SEC vs. Uniswap lawsuit, with pro-crypto attorney Bill Morgan identifying a similarity with the ongoing Ripple lawsuit.
For context, Uniswap, the world’s largest decentralized exchange (DEX), revealed on Wednesday that it had received a Wells Notice from the U.S. SEC, with the regulatory agency disclosing plans to pursue enforcement actions against the exchange.
The development sparked a dramatic response from UNI, the platform’s native token, which slumped 9.5% over 24 hours. Responding to the notice, Uniswap CEO Hayden Adams expressed his disappointment in the agency’s move, stressing that he is “ready to fight.”
This adds to the line of leading cryptocurrency entities that the SEC has filed charges against as the securities regulator continues to battle Ripple, Coinbase, and Binance across multiple lawsuits. In addition, the notice to Uniswap came up two months after the SEC adopted new rules regarding liquidity providers.
Amid the ongoing unrest, Australian-based attorney Bill Morgan called attention to a similarity between the ongoing Ripple lawsuit and the potential legal case the SEC is looking to file against Uniswap.
His remark came in response to statements made by Adam Cochran, founder of venture capital firm Cinneamhain Ventures, in which he pointed out that in all six years, Uniswap has operated, the SEC failed to provide any clear guidance to regulate its operations.
Similarities Between Ripple and Uniswap Cases
Cochran wondered why the agency decided to send the company a Wells Notice at this point. Reacting, Morgan stressed that the securities agency did the same thing with Ripple and waited eight years after XRP began trading to bring charges against Ripple.
Notably, within these eight years of Ripple’s XRP sales, the SEC failed to provide any sufficient guidance to regulate the crypto industry. According to Ripple’s argument, uncertainty was also prevalent within the agency regarding what constitutes securities, as evidenced by the circumstances surrounding Bill Hinman’s speech.
Morgan emphasized that the SEC’s mode of operation has been to wait for a firm to attain success and then file charges against them to secure billions in remedies. The agency already demands nearly $2 billion from Ripple as penalties for its unregistered institutional XRP sales.
In a separate remark, Matt Corva, General Counsel at Consensys, argued that the SEC’s enforcements are aimed at creating chaos that mitigates chances of DeFi threatening the status quo. Corva previously claimed in 2020 that there had been no attack on crypto after the SEC sued Ripple.
Nearly four years later, the regulatory agency has added multiple high-profile crypto companies to its enforcement list. Morgan pointed out that Corva should have realized that the SEC has been out to attack the crypto industry since 2020 when Ripple was sued.
