Decentralized alternate (DEX) Uniswap has urged the U.S. Securities and Trade Fee (SEC) to desert its proposal to manage the decentralized finance (DeFi) area, citing the U.S. Supreme Courtroom’s current ruling on Chevron deference.

In a letter despatched to the SEC Wednesday, attorneys for Uniswap argued that, “for better or worse—the Commission will not be able to claim the benefit of Chevron deference to defend its aggressive and atextual interpretation of its statutory authority.”

The SEC proposed to develop the definition of an alternate in April final 12 months, bringing DeFi protocols similar to DEXs beneath its jurisdiction. In a press release accompanying the announcement, SEC Chair Gary Gensler mentioned that, “Make no mistake: many crypto trading platforms already come under the current definition of an exchange and thus have an existing duty to comply with the securities laws.”

In its Wednesday letter, Uniswap argued that the SEC’s proposal relied on a “staggeringly broad and unprecedented” studying of the Securities Trade Act of 1934, and that the regulator was exceeding its statutory authority.

What’s Chevron deference?

Final month, the Supreme Courtroom dominated to abolish “Chevron deference,” a longstanding doctrine that gave administrative businesses beneath the President the authority to interpret sure legal guidelines left obscure by Congress.

Uniswap’s attorneys cited the Supreme Courtroom ruling of their letter to the SEC, arguing that, “there is now no realistic possibility that a court could uphold the proposed amendments if challenged,” and that the authorized backdrop beneath which the SEC had drafted its proposed modification has been “replaced by something dramatically less forgiving of agency efforts to stretch the meaning of the statutes they enforce.”

The crypto area was fast to rejoice the Supreme Courtroom’s resolution final month, with the Crypto Council of Innovation noting that it known as into query the “role and firepower” of regulators such because the SEC.

Uniswap vs the SEC

There is no love misplaced between Uniswap and the SEC, with the DEX itself dealing with an enforcement motion from the regulator.

In April, Uniswap revealed that it had been the recipient of a Wells discover from the SEC, which the corporate’s chief authorized officer Marvin Ammori known as an “abuse of power” on the a part of the regulator.

The next month, the alternate pushed again towards the SEC in a weblog put up, calling its authorized arguments “weak” and “an effort to expand its jurisdiction beyond exchanges to communications technology.”

Edited by Stacy Elliott.