A notable decline of nearly 10% in trading activities was observed on the decentralized exchange Uniswap following the announcement of a Wells notice issued by the US Securities and Exchange Commission (SEC) to Uniswap Labs, the overseeing organization behind the trading platform.

Based on statistics provided by DeFillama, Uniswap orchestrated transactions amounting to $2.7 billion across diverse blockchain networks, including Ethereum, Arbitrum, Coinbase-backed Base, and others. The major drop in trading operations primarily occurred on Uniswap V3, which is recognized as the most utilized version of the platform.

In spite of this setback, Uniswap recently surpassed the milestone of exceeding $2 trillion in total trading volume, reflecting its profound influence and significance within the crypto trading sphere.

The news of the SEC's actions had a conspicuous impact on Uniswap's native UNI token, which plummeted to a multi-week low of $9.09, as detailed by CryptoSlate. Blockchain analysis conducted by Lookonchain exposed that three major holders offloaded 2.03 million UNI tokens valued at $20 million on centralized exchanges subsequent to the announcement.

One significant holder deposited 1.25 million UNI tokens on Binance, with another executing a similar action but refraining from selling at present. In the event of a sale, these wallet addresses could potentially generate profits reaching approximately $3.5 million each. Another major holder disposed of 472,691 UNI tokens for $4.59 million in USDC, generating profits amounting to $1.67 million.

Mavin Ammori, Chief Legal Officer at Uniswap Labs, affirmed the company's readiness to confront any prospective legal actions that may arise from the SEC. Ammori accentuated the regulatory jurisdiction of the SEC, pointing out that a majority of tokens, ranging from Bitcoin to ETH, stablecoins, and meme coins, do not classify as securities. He underscored that as per recent legal precedents, the Uniswap Protocol, web application, and wallet do not align with the defined parameters of a securities exchange or broker.

Ammori reiterated Uniswap Labs' endorsement for rational regulations within the cryptocurrency domain, advocating for explicit guidelines over capricious enforcement by regulatory bodies. The commitment to operating within lawful boundaries and fostering an environment that prioritizes clarity and compliance resonates strongly within the ethos of Uniswap Labs amidst the regulatory turbulence triggered by the SEC's actions.