CFTC Cracks Down on DeFi: Uniswap Fined for Leveraged Token Trading
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- Uniswap Labs settled with the CFTC, paying a $175,000 fine for alleged violations of the Commodity Exchange Act.
- The CFTC’s action emphasizes increased scrutiny on DeFi platforms, raising concerns about innovation and regulatory clarity.
- Commissioner Summer Mersinger criticized the CFTC’s approach, urging the agency to shift from enforcement to clear rulemaking.
Read also: Coinbase Pushes Back on CFTC’s Prediction Market Ban
The Commodity Futures Trading Commission (CFTC) has settled charges with Uniswap Labs, the company behind the decentralized exchange Uniswap, regarding allegations of illegally offering leveraged retail trading of digital assets, Bloomberg reported.
The settlement includes a $175,000 fine and a cease-and-desist order for violating the Commodity Exchange Act. Uniswap Labs, also known as Universal Navigation Inc., was found to have facilitated trading of leveraged tokens without proper registration, contravening regulatory requirements.
The CFTC’s action highlights the agency’s ongoing scrutiny of DeFi platforms. The tokens in question were considered leveraged or marginal commodity transactions, which the CFTC stated did not re…
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