Uniswap delists HEX due to SEC’s “unregistered security” label. Value drops 12%. Debate over decentralisation. Regulatory challenges impact DeFi.
Uniswap Removes HEX Token, Spurred by SEC’s “Unregistered Security” Verdict
Uniswap, the leading decentralised exchange, has taken swift action by removing the HEX token from its platform after the United States Securities and Exchange Commission’s (SEC) classified the token as an “unregistered security.”
This decision has dealt a significant blow to HEX, causing its value to plummet by more than 12% in the last 24 hours, as per CoinGecko data.
HEX moved to “Unsupported List”
Uniswap Labs, the developer of the Uniswap protocol, has included HEX in its “Unsupported List.” The list comprises tokens violating trademark rules, associated with scam projects, or entangled in legal issues. This move aims to distance Uniswap from any assets that might draw regulatory scrutiny.
The SEC lawsuit has specifically targeted HEX’s founder, Richard “Heart” Scheuler, who is also associated with PulseChain and PulseX, a Uniswap fork. The commission alleges that Scheuler offered an “unregistered security” through the HEX token. They also raised concerns about its staking mechanism, lock-up schedule, and possible token supply manipulation.
Interestingly, the SEC mentioned Uniswap in its court documents as a crucial factor in selecting the case’s venue. Numerous transactions implicated in the lawsuit apparently occurred on Uniswap, headquartered in Brooklyn, New York, potentially leading the exchange to distance itself from HEX.
Crypto Community is Divided on the Ruling
The crypto community on Twitter has responded with diverse opinions regarding Uniswap’s delisting of the HEX token. Some users question Uniswap’s claim of being truly decentralised, even expressing negative reviews on various platforms. Conversely, others support the exchange’s decision, considering the SEC’s case against Richard Heart as valid.
The situation with HEX and Uniswap highlights the ongoing regulatory challenges faced by the cryptocurrency industry, particularly in the decentralised finance (DeFi) landscape. Market participants and investors will closely watch the legal proceedings and their potential implications for the DeFi ecosystem.
