The US Securities and Exchange Commission (SEC) has officially declared war on the cryptocurrency world. This time, the SEC has targeted Uniswap (UNI), one of the biggest players in the DeFi sector.

The developer team confirmed in a press release hours ago that the SEC is preparing a lawsuit or enforcement action against the platform. The SEC issued a statement on Wednesday against Uniswap Labs, the company behind the largest decentralized exchange.

The Uniswap team made the following statement after the notification, referring to a similar case brought by the Commission in June 2023:

“This is the latest political move targeting even the best actors in the crypto world, such as Uniswap and Coinbase.”

The UNI team shared that they are ready to fight and that all their activities continue within the law. In the press release, the company defended itself against the SEC, citing the Ripple case as an example. Uniswap Labs stated that the SEC has no jurisdiction over on-chain markets.

“Even if the Ripple decision and the Supreme Court’s Howey test do not overrule the SEC’s arguments, the Uniswap Protocol, web application and wallet would still not meet the legal definitions of a securities exchange or broker.”

Uniswap (UNI) price hits multi-week lows

After the news of the US Securities and Exchange Commission’s lawsuit, the platform’s local token UNI was negatively affected. The altcoin, which has been rising steadily since November, has lost 35 percent in the last month.

UNI is currently changing hands at $9.42.