Are Dogecoin and Uniswap on the SEC’s radar?
As a meme coin, Dogecoin was created as a joke in 2013, but its recent accomplishment doesn’t sound like a joke at all. However, does this result in regulatory difficulties for DOGE? This is the topic that was discussed in a recent video by attorney Jeremy Hogan.
Dogecoin and SEC
After the go-live, more than 95% of DOGE was dismantled in the first year, which underlines the support of the community for this harmless cryptocurrency. On the other hand, as the community got more and more involved, DOGE has attracted world famous people like Elon Musk and he calls himself “Father Dogecoin”.
DOGE price chart since the beginning of the year | Source: Coinmarketcap
In just one year, DOGE’s value rose 7,000%, an alarming rate for traditional investors and regulators. However, since there is no ICO, there is no direct round of coin sales conducted by a centralized entity. According to attorney Jeremy Hogan, it is “a decentralized ledger and a tightly knit community of funny weirdos”.
For legal analysis, DOGE cannot be sued by the SEC because of its reputation and the circumstances in which it came into being. Even if they do decide to file a lawsuit, there is no instance to which the regulators can summon. This makes it a safe bet for traders but mostly for DOGE enthusiasts.
While the hype surrounding DOGE remains unprecedented despite recent price developments, Uniswap is another project that caused quite a stir when it was launched.
SEC will “inquire” Uniswap?
This decentralized protocol provides automatic liquidity on Ethereum developed by Uniswap Labs. Tokens are distributed via Airdrop, not via ICO.
With Airdrops, 40% of the delivery goes to Uniswap Labs employees. This offer is released over a period of 4 years. Under current securities laws, it can be argued that an airdrop is a form of securities transfer. In fact, in 2020 lawyer Stephen Palley called UNI “almost certainly” a security.
But even if the SEC turns to Uniswap Labs on the matter, there will still be no lawsuits as the platform did not make a profit from the alleged coin sale as the airdrop is free. According to Hogan:
“Uniswap has no profit, so what’s the SEC’s incentive to file a lawsuit? What is the main reason for the lawsuit? “
It should be noted here that attorneys representing crypto companies like Palley have long asked the SEC to clarify regulatory guidelines for better compliance.
At home at home
According to AMBCrypto