Uniswap Labs, the entity behind the decentralized exchange (DEX) Uniswap, has been penalized by the US Commodity Futures Trading Commission (CFTC).
According to a September 4 press release, the company was accused of illegally offering margined and leveraged retail commodity transactions in digital assets.
As part of the settlement, Uniswap Labs must pay a $175,000 fine and halt further violations of the Commodity Exchange Act (CEA).
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Ian McGinley, the CFTC's Director of Enforcement, issued a statement about the settlement, emphasizing the importance of DeFi platforms ensuring their transactions follow legal regulations. Uniswap Labs' Chief Legal Officer Katherine Minarik also commented on the matter on X.
CFTC's announcement had an immediate impact on the price of Uniswap's UNI token, as it briefly dropped below $6 on September 4. However, it has since slightly rebounded, increasing by 0.66% over the past 24 hours to trade at $6.27 at the time of writing.
This isn't Uniswap's first brush with regulators. Earlier in April, the US Securities and Exchange Commission (SEC) issued a Wells Notice to the DEX over potential violations of securities laws. In its formal response, Uniswap argued that it does not fit the legal criteria for an exchange and, therefore, is exempt from the SEC's regulatory oversight.
Overall, Uniswap continues to be a dominant force in the DeFi space, but its ongoing regulatory battles highlight the increasing regulatory scrutiny that decentralized platforms face.
