Uniswap (UNI) Jumps 8% Amid Regulation News Following $175,000 CFTC Settlement
Uniswap Settles with CFTC for $175,000
The Commodities Futures Trading Commission (CFTC) issued an order against Uniswap on Wednesday, imposing a $175,000 settlement fee. The regulator acknowledged Uniswap Labs' cooperation with the Division of Enforcement's investigation, resulting in a reduced civil monetary penalty.
Key Details of the Settlement
- Uniswap to Pay $175,000 in CFTC Case: The CFTC issued an order and settled charges against Universal Navigation Inc., operating as Uniswap Labs, requiring the company to pay a $175,000 fine.
- The charges stem from illegally offering leveraged or margined retail commodity transactions in digital assets through its decentralized trading protocol.
Future Compliance Mandates
In addition to the civil penalty, the CFTC warned Uniswap Labs against future violations of the Commodity Exchange Act (CEA). The commission criticized Uniswap for failing to register as a designated contract market, which prohibited the DEX from offering leveraged trading products.
- Despite lacking proper registration, Uniswap created a user interface and smart contracts that allowed users to trade tokens.
- Third parties also developed some of these tokens, exposing investors to leveraged or margined returns linked to the price of Bitcoin (BTC) and Ethereum (ETH).
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.