- Despite regulatory concerns, Uniswap has continued to modify its governance mechanisms.
- UNI’s price saw a notable increase over the last 24 hours.

Uniswap [UNI] has established itself as a leader in the Decentralized Exchanges (DEXs) sector based on activity and other metrics. However, recent regulatory scrutiny has caused some issues for the protocol, as a Wells Notice was issued to Uniswap’s team.

### Uniswap's Response
Uniswap swiftly responded to the Wells Notice. Marvin Ammori, Chief Legal Officer at Uniswap Labs, tweeted that the project is fully compliant with U.S. law. He also accused the SEC of overreaching its authority by targeting assets and individuals beyond its jurisdiction. Ammori emphasized that about 75% of Uniswap’s usage and nearly 90% of its trading volume occurs outside the U.S., arguing it falls outside the SEC’s jurisdiction. He also mentioned that Uniswap has already addressed the SEC's allegations and is prepared to litigate if necessary.

Despite these challenges, Uniswap's governance continues to evolve significantly.

### Governance Remains Unfazed
According to a recent governance proposal, on 31 May, UNI token holders will vote on a proposal to establish a system for autonomous fee collection and distribution. This system would automatically collect fees generated by trades on Uniswap V3 pools and distribute them proportionally among UNI holders who stake and delegate their tokens.