With DeFi booming, investors fear regulatory crackdowns. So when the SEC was found to be considering Uniswap, many rushed to sell UNI fearing the price would fall.
The SEC probe weighed on Uniswap. Although investors panicked to sell UNI, many may wish to buy it back once the facts became known. It is worth noting, for example, that the SEC only collects information about Uniswap and does not respond to allegations of wrongdoing. So this doesn’t seem to be a cause for UNI-specific concern – in fact, SEC chairman Gary Gensler has been talking about DeFi regulation given the sector’s rapid growth, and the SEC could be looking at other DeFi projects as well.