Four days after Uniswap Labs and the Uniswap Foundation proposed merging their operations and triggering the long-awaited rate change, an X-feud between the protocol’s founder and Gary Gensler’s former chief of staff reopened wounds the crypto industry thought had healed.
The exchange wasn’t just about a vote on governance, it was a proxy war over how Washington and Web3 remember 2022, and whether decentralization was ever more than regulatory theater.
Amanda Fischer, now at Better Markets after serving as SEC chief of staff under Gensler, fired first.
On November 14, she posted that Uniswap’s proposal to consolidate Foundation operations into the profitable Labs entity while redirecting protocol fees to UNI token burns read:
“This site is full of posts about Uni’s move to centralization because this has never been a core philosophical value, but a regulatory shield.”
Within hours, Hayden Adams responded:
“You tried to hand over a centralized crypto exchange monopoly in the US to FTX. I built the largest decentralized marketplace in the world. And she says decentralization isn’t one of my values? This crash is crazy lmao. Not everything you read on Twitter is true Amanda.”
The spirit of SBF’s Washington playbook
Adams’s invocation of FTX was not a rhetorical flourish, but a strategic dig. In October 2022, a month before his stock market crashed, Sam Bankman-Fried (SBF) published “Possible Digital Asset Industry Standards,” a policy framework that endorsed the licensing of DeFi front-ends and required OFAC sanctions screening.
The proposal provoked an immediate backlash from the builders, who saw it as a surrender disguised as a compromise.
The debate crystallized in a Bankless episode, in which Erik Voorhees accused SBF of “glorifying OFAC” and undermining crypto’s core values.
Bankman-Fried countered that front-end licensing would preserve code without permission while appeasing regulators, a distinction that critics found pointless because the interfaces were how most users accessed protocols.
At the same time, SBF became the most prominent backer of the Digital Commodities Consumer Protection Act, a legislation critics dubbed the “SBF bill” for its compliance requirements that would essentially ban major DeFi services.
The bill died along with the implosion of the FTX, but the episode confirmed a narrative: Bankman-Fried wanted to oversee the centralized exchanges, and Washington was willing to play along.
Fischer’s SEC tenure overlaps with this period. Although she has pushed for transparent regulation of the Administrative Procedure Act, her record is unequivocally in favor of enforcement.
In congressional testimony, she argued that crypto can comply with existing securities laws. In a recent analysis co-authored by Better Markets, the current SEC was criticized for “abandoning” its enforcement efforts.
Her philosophical alignment with strong regulations makes Adams’ accusation particularly charged.
The rate change that lasted five years
The unification proposal represents a real structural change. Since UNI launched in 2020, Uniswap Labs has operated at arm’s length from the board and has been limited in how it can participate in protocol decisions.
The rate change remained dormant despite repeated attempts, each stalled by legal uncertainty over whether activation would turn UNI into a security.
The November 10 proposal, co-authored by Adams, Foundation Executive Director Devin Walsh, and researcher Kenneth Ng, activates protocol fees for Uniswap v2 and v3 pools, directs the proceeds to UNI burns and immediately wipes out 100 million UNI from the treasury.
Labs would also stop collecting its own interface fees, which have totaled $137 million.
The merger brings together the Foundation’s activities in Labs, creating “one aligned team” for protocol development. Critics see centralization as a disadvantage, because fewer entities mean fewer controls.
Proponents see efficiency as an advantage because fewer entities mean faster execution. UNI rose up to 50% on the news, before reaching $7.06 at the time of writing.
Fischer’s reading is that decentralization was always contingent, maintained when it provided legal insulation, and abandoned when economic incentives changed.
According to Adams, this move represents maturation, where a protocol that has survived five years of regulatory hostility can finally align value creation with governance.
What 2022 actually looked like
The Tornado Cash sanctions in August 2022 provided the context to which both sides refer. When the Treasury Department’s OFAC approved the mixer protocol, it was the first time the code itself was designated.
The action forced every DeFi builder to investigate whether US users could legally interact with their protocols and whether front-ends were liable.
The SBF policy memorandum ended up in exactly that atmosphere two months later. His framework recognized the new reality: If regulators could sanction protocols, the struggle for access became existential.
His answer, which was about licensing the interfaces, screening users and keeping code free, struck many as a capitulation to the chokepoint model that crypto sought to circumvent.
The alternative position, championed by builders like Voorhees and implicitly by Adams, held that any compromise on access control recreated TradFi’s gatekeeper in Web3 clothing.
If you front-screen users, you’ve already lost the game without permission.
Uniswap’s position was important because of its size. As the largest decentralized exchange, now processing more than $150 billion monthly and generating nearly $3 billion in fees annually, its compliance posture sets the industry up for default.
Why this is important now
The current SEC has withdrawn from crypto enforcement under the new administration. Fischer’s Better Markets analysis explicitly points to this decline.
For enforcement advocates, the unification of Uniswap is a victory that slips away after regulatory success.
For Adams and the DeFi community, the proposal represents earned autonomy after surviving years of hostile scrutiny that almost classified UNI as a certainty, creating such profound legal uncertainty that the rate change remained dormant despite the wishes of token holders.
The FTX reference is the deepest because it reframes the question of who worked with whom. If SBF’s Washington agenda aligned with the SEC’s preferences, then enforcement-oriented regulators were the enablers of centralization, not the protectors against it.
Adams built infrastructure without permission; Bankman-Fried lobbied for recognized chokepoints. One of them has survived the regulator’s scrutiny and now activates value sharing for token holders. The other collapsed on fraud.
Their
The $800 million token burn and 79% chance of board approval suggest the market has already chosen its answer.
