Uniswap Labs Penalized $175K by CFTC for Crypto Derivatives Violation; UNI Price Steady with Optimistic Outlook

• CFTC’s $175K fine against Uniswap signals a shift towards lighter penalties and cooperation in DeFi regulation.
• Despite regulatory action, UNI’s price remains stable, reflecting market optimism for Uniswap’s resilience.

As of now, the Commodity Futures Trading Commission (CFTC) has taken enforcement action against Uniswap Labs, a leading DeFi protocol, for allegedly offering illegal leveraged retail commodity transactions in digital assets. Earlier, as reported by CNF, Uniswap Labs has also asked the SEC to reconsider its proposed rule changes to the Securities Exchange Act of 1934.

The CFTC fined Uniswap $175,000 and ordered the platform to cease these activities, citing violations of the Commodity Exchange Act (CEA). Director of Enforcement Ian McGinley stated,

Today’s action demonstrates once again the Division of Enforcement will vigorously enforce the CEA as digital asset platforms and DeFi ecosystems evolve. DeFi operators must be vigilant to ensure that transactions comply with the law.

The agency emphasized that Uniswap allowed users to trade cryptocurrencies like Ether and Bitcoin with 2:1 leverage, categorizing them as commodities under its oversight.