Trading activity on the decentralized exchange Uniswap experienced a nearly 10% decrease in the past day following the issuance of a Wells notice by the US Securities and Exchange Commission (SEC) to Uniswap Labs, the entity behind the platform.

According to data from DeFillama, Uniswap facilitated trades totaling $2.7 billion across various blockchain networks, including Ethereum, Arbitrum, Coinbase-backed Base, and others. Most of the decline in trading activity occurred on Uniswap V3, the platform's most utilized version.

Despite this setback, Uniswap recently surpassed $2 trillion in total trading volume.

The news of the SEC's action had a significant impact on Uniswap's native UNI token, which dropped to a multi-week low of $9.09, as reported by CryptoSlate. Blockchain analysis from Lookonchain revealed that three whales sold 2.03 million UNI tokens worth $20 million on centralized exchanges following the announcement.

One whale deposited 1.25 million UNI tokens on Binance, while another deposited the same amount but has not sold yet. If sold, these addresses could potentially earn around $3.5 million each. Another whale sold 472,691 UNI tokens for $4.59 million USDC, resulting in a profit of $1.67 million.

Mavin Ammori, Uniswap Labs' Chief Legal Officer, expressed the company's preparedness to confront any potential lawsuit initiated by the SEC. Ammori highlighted the SEC's jurisdiction, emphasizing that most tokens, including Bitcoin, ETH, stablecoins, and meme coins, do not qualify as securities. He underscored that the Uniswap Protocol, web app, and wallet do not meet the legal definitions of securities exchange or broker, citing recent legal precedents.

Ammori reiterated Uniswap Labs' support for sensible regulations in the cryptocurrency space, advocating for clear rules rather than arbitrary enforcement by regulatory authorities.