SEC Closes Investigation into DeFi Exchange Uniswap, Will Take No Action

Plus an unusual request in Musk case that SEC staff declare that they had "not been motivated by politics."

Author

Bruce Carton
February 26, 2025

SPONSORED BY

Good morning! Here’s what’s up.

Poll Results

A remarkable 83% of you DO NOT believe the SEC should eliminate the position of Regional Director. Most of the polls we’ve run here have been fairly even but not this one.

Clips ✂️

Uniswap Says the SEC Closes Probe of Decentralized Finance Firm

Uniswap Labs, the creator of the largest decentralized trading platform on Ethereum, said the US Securities and Exchange Commission has closed its investigation into the company with no enforcement action.

In April, Uniswap said the SEC sent a so-called Wells Notice saying that it planned to recommend a legal action against it. The agency had alleged that the company that hatched the DeFi exchange project operated as an unregistered broker, exchange and issued an unregistered security, the firm said at the time. A SEC spokesperson declined to comment Tuesday.

by Bloomberg

👉 Another day, another SEC crypto case or investigation closed or paused.

On his LinkedIn, John Stark summarizes this matter as follows: “So This is How the SEC Dies.” Stark is firmly (understatement) on record as a Crypto Skeptic (also an understatement), and adds that:

“… to me, the cryptoverse is a Walking-dead apocalyptical anarchical marketplace, enabling a plague of horrific and dire externalities (such as ransomware, terrorism, human trafficking and other horrendous crimes) while also creating a new epoch of global financial systemic risk.” […]

“The Stark reality is that there is nothing about the cryptoverse that suggests that investors are less deserving of the protections of US securities laws, and the SEC’s shameless abdication of its sacrosanct investor protection mandate sounds the death knell for a once proud, storied and vital financial watchdog.”

SEC Official Sought Staff’s No-Politics Pledge on Musk Lawsuit

Shortly before the SEC’s January meeting, the San Francisco-based team that had been investigating the matter shared its findings with the commissioners. The team needed approval to file the complaint in court and move ahead with the case. Commissioners regularly get time to scrutinize enforcement cases, to look at their merits and the substance of the inquiries behind them. But in this instance, Uyeda wanted answers to the same sort of question Musk’s attorney asked.

A staff member for Uyeda asked the team in San Francisco and another in enforcement if they would be willing to sign off on a declaration that they had not been motivated by politics, three people familiar with the matter said. It was such a jarring request that multiple officials filed complaints with the SEC’s inspector general, according to two people who’ve monitored the situation.

by Bloomberg

CFTC Releases Enforcement Advisory on Self-Reporting, Cooperation, and Remediation

The Commodity Futures Trading Commission’s Division of Enforcement today issued an advisory on how the Division will evaluate a company’s or individual’s self-reporting, cooperation, and remediation when recommending enforcement actions to the Commission and establishes the factors the Division will consider. This marks the first time the Division will use a matrix to determine the appropriate mitigation credit to apply. The advisory provides fair notice to the public and guidance that is designed to ensure due process in the Division’s investigations and enforcement actions.

by CFTC Press Release

👉 I’ve said it before, this is not CFTC Docket, but I do like the “Mitigation Credit Matrix” the CFTC included in this advisory. Handy!

On his LinkedIn, former CFTC Division Director Josh Sterling says the Matrix “tracks what we had when I was there—good to provide clarity to the public, and great leadership by Caroline D. Pham.”

Cheesecake Factory, Coors Cite Weight Loss Drugs as New Risk

The Cheesecake Factory, Inc. and Keurig Dr Pepper, Inc. are among businesses warning investors in their annual reports that weight loss drugs that curb appetites also pose a risk to curbing their sales.

Keurig Dr Pepper said in its 10-K annual report Tuesday that its financial results could be impacted by new consumer preferences, including the use of weight loss drugs. The Cheesecake Factory made a similar disclosure in its annual report Monday, noting that “new and current medical treatments such as GLP-1 agonists may shift consumer preferences.”

by Bloomberg Law

SPONSORED BY

With deep expertise in forensic accounting and investigations, George A. Saitta uncovers financial and accounting misconduct and helps clients navigate complex regulatory challenges. His work has taken him into high-stakes cases, emerging industry trends, and the evolving regulatory landscape. Learn more about him through our interview questions below! 

💡 Most Interesting Matter?

A multi-year forensic accounting investigation with two major law firms took our FTI Consulting team deep into the world of fracking, oil, and the business in West Texas. The case covered corporate opportunity, kickbacks, creative accounting —and was the only one that involved everything from hunting of exotic game animals to being under surveillance and followed while in town. 

📈 An Anticipated and Go-Forward Trend?

Company deregulation may drive more whistleblower and employee complaints directly to Audit Committees and Boards, increasing the role of Special Committees and outside counsel in these investigations. This shift presents an opportunity for public companies to strengthen their ethics and compliance programs and highlights the need for strong forensic accounting services. 

Want to learn more about George? Read his full bio here. 🚀

X