Uniswap fights back against SEC as the Ethereum crackdown continues
For years, the Securities and Exchange Commission has been cracking down on the crypto sector writ large, but in the last few months, the agency appears to have trained its sights on Ethereum, in particular. Some of the biggest names in decentralized finance are now fighting back.
In a 40-page filing on Tuesday, Uniswap Labs — which builds decentralized finance infrastructure including a popular DeFi crypto exchange that enables users to custody their own coins — details to the SEC all the reasons why the agency shouldn’t pursue legal action against them. It comes a few weeks after the commission issued Uniswap a Wells notice, warning the company that it identified potential violations of U.S. securities law.
“The SEC’s entire case rests on the false assumption that all tokens are securities. Tokens are in fact, simply a file format for value,” said Uniswap’s chief legal officer Marvin Ammori.
“The SEC has to essentially unilaterally change the definitions of exchange, broker, and investment contract in order to try to capture what we do,“ continued Ammori.
A Wells notice is typically one of the final steps before the SEC formally issues charges. It generally lays out the framework of the regulatory argument and offers the potentially accused an opportunity to rebut the SEC’s claims.
So far this year, the federal regulator has sent Wells notices, filed lawsuits, or reached settlements with a host of crypto firms, and the agency’s legal challenges are increasingly focused on ethereum and players working in decentralized finance, including ShapeShift, TradeStation, Uniswap and Consensys. It also comes as the agency is reportedly investigating the Ethereum Foundation.
CNBC reached out to the SEC about the recent batch of Wells notices sent out to crypto firms, and an agency spokesperson declined to comment.
In April, Consensys tried to preempt the SEC’s action with its own lawsuit, alleging regulatory overreach on the part of the regulator. The 10-year-old crypto firm said its suit followed three subpoenas issued last year, plus a Wells notice from the SEC that claimed the company was violating federal securities laws.
“This action is about the almost certainty that we hold that the SEC is trying to slow or kill ethereum, decentralization, disintermediation, and disintermediated technology in the U.S. and probably wouldn’t stop there with its long arm,” said long-time ethereum veteran Joseph Lubin, who went from co-founding the blockchain to launching and running Consensys.
“It might influence other nation states to do similarly draconian things,” continued Lubin.
Security vs. commodity
The recent spate of actions targeting major names working in the Ethereum ecosystem come ahead of a long-awaited decision on whether the regulator will approve or deny applications to launch spot ether exchange-traded funds.
To date, the agency’s stance on ether’s classification as either a commodity or a security remains uncertain.
“We think big banks like the way things are organized. We think certain factions of the U.S. government like the way they operate,” said Lubin. “Without explicitly stating their intentions, without public discussion and clear rule-making, the SEC seems to have decided to reclassify ether as a security without being able to utter that that’s what they’re doing.”
The industry argues if ether — the native token of the Ethereum blockchain — gets classified as a security, it could throw the future of the Ethereum network and many adjacent crypto firms into question. Exchanges, both centralized and decentralized, would be forced to choose between registering with the SEC, or delisting ether altogether.
“If the SEC, in fact, does take the position that Ethereum is a security, pretty much everyone in this business that is using or providing services of the Ethereum blockchain, they’re going to be on notice that they might need to be registered,” said digital assets attorney Christopher Gerold, who previously served as the chief of the New Jersey Bureau of Securities.
“Whatever protections they thought they had before are no longer going to be there, and we’re going to see a shift in the industry,” continued Gerold.
The head of litigation and investigations at Consensys told CNBC that they’ve been alarmed that the SEC has been targeting developers.
“They asked for a list of the names of any Consensys developers who contributed any coding to the merge,” said Laura Brookover.
The so-called merge was a years-in-the-making systemwide upgrade to the Ethereum blockchain that took effect in September 2022 and changed the way transactions are verified. The proof-of-stake model, which replaced the proof-of-work model, requires volunteers on the network to put up their ether tokens, or “stake” them, in order to secure the network.
Brookover says the agency has explicitly asked for the identities of public and private Consensys software developer code repositories.
“Those are very strange requests from a financial regulator,” continued Brookover. “I can speak to that, because I used to be in the CFTC’s enforcement division and investigated cases myself.”
Multiple coders and industry executives have told CNBC that it is possible the SEC could be taking more of an interest in Ethereum, because the regulator thinks its native token functions more like a security after the merge.
Brookover told CNBC that their suit asks the court to declare both that ether is not a security and that the SEC lacks jurisdiction to investigate Ethereum. Ultimately, the regulator will have to respond to the Consensys complaint in a legal filing.
“They’re going to be hard pressed not to stay in their answer whether they think Ethereum is a security or not,” said Gerold, adding that he suspects that the agency will take the position that it is a security because of the proof-of-stake change that took effect two years ago.
One thing the SEC has been clear on is its classification of bitcoin as a commodity. With ether, the narrative has changed.
In 2018, when Bill Hinman was still the Director of the Securities and Exchange Commission’s Division of Corporation Finance, he told CNBC that, “When we look at bitcoin or if we look at ether and the highly decentralized nature of the networks, we don’t see a third-party promoter where applying the disclosure regime would make a lot of sense.”
“So we’re comfortable…viewing these as items that don’t have to be regulated as securities,” continued Hinman.
In April 2023, when Rep. Patrick McHenry (R-N.C.) asked SEC Chair Gary Gensler whether ether was a commodity or a security, Gensler demurred.
SEC vs. crypto
Gensler has, in multiple interviews, repeatedly shared that he believes much of the industry already belongs under its jurisdiction, and its lawsuits are simply bringing the industry under compliance. Crypto firms argue that the recent legal battles haven’t given the regulatory clarity the industry has been seeking for years.
With the Uniswap Wells notice, for example, a source at the company told CNBC that dealing with the SEC was akin to “talking to a wall.”
For two years preceding the Wells notice, Uniswap described the protracted interactions with the agency as an opaque process that involved responding to multiple requests, including giving testimony and sending several documents to the agency, without getting much feedback about the regulator’s concerns around potential wrongdoing. This source also told CNBC they had not heard from the regulator at all in 2024 until the agency told them in a half-hour phone call that they would be receiving a formal notice.
Both Consensys and Uniswap suggest the SEC’s broad approach to classifying securities may be outdated.
“The SEC is arguing that the Uniswap protocol is an unregistered securities exchange, and that the Uniswap interface and wallet are both unregistered broker brokers,” Ammori said.
But Uniswap argues that the protocol itself is a general purpose computer program that anyone can use and integrate.
“So the protocol is not an exchange also, because under the law, it would have to be specifically designed for securities trading, and it is not,” continued Ammori.
Uniswap argues in its response to the SEC that the majority of its trading volume is obvious non-securities, like ether, bitcoin, and stablecoins.
“It’s not run by a group, as the definition requires, but as autonomous software no person or group controls,” added Ammori.
“The SEC knows that the current definition of exchange does not cover the protocol, or anything we do. That’s why as we speak, there’s a pending rulemaking, for the SEC is trying to redefine about a half dozen words in their own regulations to try to capture us,” contined Uniswap’s chief legal officer.
Alma Angotti, partner and global legislative and regulatory risk leader at the consulting firm Guidehouse, cautions that it is less clear whether decentralized exchanges function like an alternative trading system, or a market maker — or whether they really are just a technology that does not act as a broker dealer.
Meanwhile, as the SEC ramps up its focus on decentralized players in the crypto ecosystem, centralized players also remain under scrutiny by the regulator.
In May, investment platform Robinhood announced it received a Wells notice for the company’s crypto operations. The SEC has also sued Coinbase and Binance. With multiple pending legal challenges from the regulator and enduring uncertainty about the future of crypto regulation in the U.S., multiple crypto businesses have said they are considering decamping from the country altogether.
“We’ve got companies that are wasting resources trying to figure out, ‘Am I a broker dealer? Are these assets securities?'” said Binance’s former chief compliance officer, Christina Rea.
“We’re already having a hard enough time trying to get them to be compliant with other important laws — anti-money laundering laws, anti-bribery and corruption laws.”
On Thursday, the commission will issue a decision on whether to approve one of the spot ether ETF applications after a multi-month delay. Many are waiting to see whether the regulator will offer clarity on its stance on ether.
— CNBC’s Jordan Smith contributed to this report.
Lease deals get all the hype, but most people still want to own the car after they’re done making all those payments on it. If that sounds like you, and you’ve been waiting for the interest rates on auto loans to drop, you’re in luck: there are a bunch of great plug-in cars you can buy with 0% financing in May, 2025!
As I was putting this list together, I realized there were plenty of ways for me to present this information. “Best EVs ..?” Too opinion based. “Cheapest EVs ..?” Too much research. “Best deal ..?” Too opinion based. In the end, I went with alphabetical order, by make. And, as for which deals are new this month? You’re just gonna have to check the list. Enjoy!
Acura ZDX
New for 2024, Acura ZDX uses a GM Ultium battery and drive motors, but the styling, interior, and infotainment software are all Honda. That means you’ll get a solidly-built EV with GM levels of parts support and Honda levels of fit, finish, and quality control. All that plus Apple CarPlay and (through June 2nd) 0% financing for up to 72 months makes the ZDX one the best sporty crossover values in the business.
All the electric Chevrolet models
Chevrolet is offering 0% financing for up to 60 months on all three of its Ultium-based EVs – and they’re all winners. The Silverado can be spec’ed up to a 10,500 lb. GVWR, making it capable enough to tow whatever horse, boat, or RV you put behind it.
On the crossover side, both the Chevy Blazer EV and Equinox EV each offer their own takes on the five-passenger family SUV, with the cost of base model Equinox LT FWD models with 319 miles of EPA-rated range dropping to just $27,500 after you apply the $7,500 Federal tax credit (which, for now, is still a thing).
Dodge Charger
As Stellantis flip-flops its way towards some kind of electrified future, Dodge is hoping that at least a few muscle car enthusiasts with extra cash will find their way to a Dodge store and ask for the meanest, loudest, tire-shreddingest thing on the lot without caring too much about what’s under the hood.
For them, Dodge has the new electric Charger. And if you still owed money on the Hemi you just totaled, Dodge will help get the deal done on its latest retro-tastic ride with a $3,000 rebate plus 0% financing for up to 72 months!
GMC Hummer EV
The biggest Ultium-based EVs from GM’s commercial truck brand are seriously impressive machines, with shockingly quick acceleration and on-road handling that seems to defy the laws of physics once you understand that these are, essentially, medium-duty trucks. This month, GMC is doing its best to move out its existing inventory of 2024s and ’25s so if you’re a fan of heavy metal you’ll definitely want to stop by your local GMC dealer and give the Hummer EV a test drive.
Honda Prologue
The Honda Prologue was one of the top-selling electric crossovers last year, combining GM’s excellent Ultium platform with Honda sensibilities and Apple CarPlay to create a winning combination. Even so, there’s still some remaining 2024 inventory out there. To make room for the 2025 models, Honda is offering 0% APR for up to 72 months on the remaining 2024s.
Hyundai IONIQ 6
From some angles, the Porsche influences in the Hyundai IONIQ 6′ design are obvious – but not so much so that it seems like a copy of anything. It’s aerodynamically efficient, comfortable, quick, offers up to 361 miles of range, can charge just about anywhere, and now through June 2nd, it’s available with 0% financing for up to 48 months.
Kia EV9
If you were waiting for a three-row SUV from a mainstream brand with a great warranty and normal doors, you’ve probably already checked out the Kia EV9. You’re not alone. Kia keeps setting EV sales records, and the EV9 is helping to drive those sales forward.
Kia’s electrified sales train doesn’t seem to be slowing down anytime soon, either. In addition to seeing some substantial discounts out there, you can finance a Kia EV9 at 0% for 72 months through Memorial Day.
Lexus RZ
Starting at $55,175, the Lexus RZ promises up to 266 miles of EPA-rated range from a 72.8 kWh battery back in the “base” RZ300e (and 224 from the top-shelf RZ450e). With up to 308 hp and over 195 lb-ft of instant, all-electric torque, the RZ promises to be one Lexus’ zippier rides in any trim.
US News is reporting that remaining 2024 and ’25 Lexus RZ models qualify for 0% financing for up to 72 months in some regions.
Nissan Ariya
I’ve already said that the Nissan Ariya didn’t get a fair shake. If you click that link, you’ll read about a car that offers solid driving dynamics, innovative interior design, and all the practicality that makes five-passenger crossovers the must-haves they’ve become for most families. With up to 289 miles of EPA-rated range, Tesla Supercharger access, and 0% interest from Nissan for up to 72 months, Nissan dealers should have no trouble finding homes for these.
Subaru Solterra
Despite being something of a slow seller, this mechanical twin of the Toyota bZ4X EV seems like a solid mid-size electric crossover with some outdoorsy vibes and granola style that offers more than enough utility to carry your mountain bikes to the trail or your kayaks to the river. Add in 227 miles of range, some big discounts, and 0% financing for up to 72 months, and this should be a great month for electric Subaru fans to drive home in a new Solterra.
Volkswagen ID.4
One of the most popular legacy EVs both in the US and Europe, the ID.4 offers Volkswagen build quality and (for 2024) a Chat-GPT enabled interface. To keep ID.4 sales rolling, VW dealers are getting aggressive with discounts, making this fast-charging, 291 mile EPA-rated range, 5-star safety rated EV a value proposition that’s tough to beat.
This month, get a Volkswagen ID.4 with 0% financing for up to 72 months or a $5,000 customer cash bonus to stack with it.
Disclaimer: the vehicle models and financing deals above were sourced from CarsDirect, CarEdge, and (where mentioned) the OEM websites – and were current as of 11MAY2025. These deals may not be available in every market, with every discount, or for every buyer (the standard “with approved credit” fine print should be considered implied). Check with your local dealer(s) for more information.
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Mercedes high-performance arm is about to hurl an all-electric, 1,000 hp GT squarely into Porsche Taycan territory – but will world-beating performance and a bespoke EV chassis be enough to convince the AMG faithful to pony up for an EV?
Despite excellent driving dynamics, screens for days, and acceleration that makes you feel like the finger of God is pressing into the seat, Mercedes-AMG’s EQE and EQS models were also cursed with jellybean styling and saddled with a confusing “is it an S class or isn’t it an S class” sub-brand that, together, probably turned more people off to EVs than on.
But Mercedes is making changes to right the ship. First, it’s dumping the EQ sub-brand and merging the styling language so that its next-generation EVs will be at least as good-looking or ugly as their ICE-powered cousins – and, second, it’s giving AMG a chassis of its own to lay down a marker and, the company hopes, make the latest generation of international super saloon buyers forget all about Xiaomi.
The newest, as-yet unnamed AMG GT will be based on an entirely bespoke platform called AMG.EA, rather than being based on an existing Mercedes-Benz EV. AMG.EA reportedly makes use of several new (to AMG, at least) technologies, including a pair of axial flux electric motors that are lighter and more powerful than the radial motors used in most EVs, while being smaller, as well.
Those AMG motors are expected to receive power from a flat, low-slung battery pack and put out at least enough power and torque to chase Porsche’s super-powered Taycan Turbo GT, which itself is good for over 1,000 hp and 0-100 kmh (62 mph) in just 2.2 seconds.
The overall proportions and rakish, sloping windshield are already clearly visible, despite the heavy camo, and it looks great. If there’s anything here to really criticize, though, it’s the bizarre echoing of Mercedes’ three-pointed star motif baked into the head- and tail-lights – which just doesn’t work for me, at all.
That said, I think Mercedes lost its way the first time they ever made the star light up. That made it a fashion brand in my book, and not the engineering powerhouse I grew up with. If you’re like me, and there’s a bunch of rowdy kids playing on your lawn, head on down to the comments and let me know.
Electric AMG image gallery
SOURCE | IMAGES: Mercedes-AMG.
If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
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Environment
Tesla employees ask Elon Musk to resign, confirm massive demand problem, get fired for it
Some Tesla employees officially asked for Elon Musk to resign as they confirmed the automaker is facing a massive demand problem, which they attribute to the CEO.
One employee got fired for it.
Regardless of the political spectrum, there’s no doubt that many Tesla employees still support CEO Elon Musk amid his extreme politicization, whether because they agree with his politics or because they support his vision for Tesla to become an AI and robotics company.
However, not all Tesla employees agree.
There’s a growing movement within Tesla employees that recognizes that Musk is currently hurting Tesla’s mission to accelerate the advent of electric transport by alienating a large part of the consumer base and politicizing Tesla’s products.
In 2024, Tesla’s sales declined for the first time in a decade, and in Q1 2025, the decline greatly accelerated.
Tesla has been trying to blame the acceleration on the Model Y changeover in the first quarter, but as we have extensively reported over the last few months, there is plenty of evidence that demand is crashing despite the new Model Y’s availability.
Some Tesla employees recognize what is happening, and they are afraid that the company is ignoring Musk’s negative impact on demand.
A group of current and former Tesla employees published an open letter in which they wrote:
The damage done to Elon’s personal brand is now irreversible and as the public face of Tesla, that damage has become our burden. We are now at a crossroads: continue with Elon as CEO and face further decline as customers abandon the brand, or move forward without him and allow our products and mission to succeed or fail on their own.
They are hoping for the latter to happen, but Musk and the board have completely ignored the demand problem.
The Tesla employees believe that Musk’s announcement that he will “refocus” on Tesla and spend less time on DOGE during Tesla’s earnings call last month was an example of that:
Elon’s recent claim that he is “refocusing” on Tesla is not only tone-deaf, it’s insulting. It implies that the hardships of the past six months stem from a lack of his attention, not from his actions. It shifts the blame onto the very people who have held this company together. Let’s be clear: we are not the problem. Our products are not the problem. Our engineering, service, and delivery teams are not the problem. The problem is demand. The problem is Elon.
The employees highlight how EV sales were up 10% in Q1 in the US while Tesla’s sales were down 9%.
The group of employees is also not buying Tesla’s excuse that it was simply due to people waiting for the new Model Y as they now confirm that thousands of new Model Ys are now sitting in inventory:
Now those very cars are sitting unsold, growing week after week. Production is running better than ever. Quality is high. Processes are strong. Demand is what’s broken. This is not a product problem. It is a leadership problem.
Electrek reported over the last few weeks that new Model Ys have been showing up as inventory vehicles despite Tesla opening up orders just weeks ago.
They are officially asking for Tesla to move forward without Musk as CEO
Tesla is ready to move forward. And we’re ready to move forward without Elon as CEO.
One of the Tesla employees behind the letter, Matthew LaBrot, has been let go, and he claims it’s due to his association with the letter.
He published it on a website and said on LinkedIn that he was let go because of it.
LaBrot had been at Tesla for more than 5 years and he was “Staff Program Manager for Sales and Delivery Training Programs” for the last 3 years.
A X account was also created to share the letter, but it was suspended by the platform, which is owned by Musk, who calls himself a “free speech absolutist.”
Tesla’s demand issues are getting so significant that the automaker told workers at Gigafactory Texas working on the Cybertruck and Model Y production lines to take a full week off.
Electrek’s Take
I’m happy to see some Tesla employees challenging the false narrative that there are no real demand issues. I liked how the letter framed the situation. It made it clear that Musk is the source of Tesla’s main problems right now.
Ignoring Tesla’s problems with the hope that you will soon figure out self-driving, even though you have been wrong about it for years, won’t make them disappear.
Unfortunately, Tesla is making it clear that injecting a dose of reality into this narrative will get you fired.
It’s a really sad time for a once-incredible company that had a massive impact on the auto industry and accelerated electrification.
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