Uniswap, a leading decentralized exchange (DEX) platform, has submitted its response to the Wells notice issued by the U.S. Securities and Exchange Commission (SEC), signaling its readiness to confront the regulatory body in court.

The response accuses the SEC of overreaching its authority by seeking to broaden its jurisdiction to encompass all digital assets. Hayden Adams, CEO of Uniswap, criticized the SEC's approach, characterizing it as an attempt to establish itself as the "world internet police." He expressed concern that the SEC's actions have not served to protect consumers and have instead inflicted substantial harm on individuals, businesses, and the nation itself.

Uniswap contends that it is not obligated to register as a broker and anticipates that litigation will result in a narrowing of the SEC's authority over technology. The company argues that the underlying transactions on its platform do not constitute securities transactions, drawing comparisons to Coinbase Wallet, which was recently found by U.S. District Judge Katherine Failla not to be engaged in brokerage activities.

Moreover, Uniswap denies soliciting users to execute swaps on its platform and asserts that its public statements do not amount to solicitation. The company also disclaims providing advice to users or interfacing with them in an advisory capacity. Additionally, Uniswap states that it does not function as a depository or engage in clearing activities, contrary to the SEC's suggestion that its contracts serve as depositories for securities.

Addressing the distribution of its native UNI token, Uniswap asserts that it does not meet the criteria outlined in the Howey test to be classified as a securities offering.

Adams emphasized Uniswap's preparedness to contest the SEC's allegations in court, reaffirming the company's commitment to defending its position. Uniswap's resolve to engage in legal proceedings underscores its determination to challenge regulatory overreach and safeguard the decentralized nature of its platform.

As the legal battle unfolds, the outcome will have significant implications for the regulatory treatment of decentralized exchanges and digital assets in the United States. Uniswap's stance reflects broader tensions between decentralized finance (DeFi) platforms and regulatory authorities, highlighting the complexities of regulating innovative technologies within existing legal frameworks.