Uniswap logo on the screen of smartphone in mans hand with downtrend on the chart on a red light background. Source: vladim_ka - stock.adobe.com

Key Takeaways:

Uniswap Labs settled with the CFTC, agreeing to pay a $175,000 fine over unregistered leveraged commodities trading.
CFTC accused Uniswap of enabling leveraged trading on tokens like BTC and ETH without proper registration.
Uniswap may face additional legal action from the SEC, having received a Wells Notice in April.

Uniswap Labs agreed to pay a $175,000 fine in a settlement with the U.S. Commodity Futures Trading Commission (CFTC) over charges related to illegal leveraged and margined commodities transactions.

The CFTC accused Uniswap of providing a platform that allowed users to trade tokens with leveraged returns, including bitcoin (BTC) and ether (ETH), without being registered as a designated contract market.

Breaking: Bullish settlement! @CFTC Issues order against @Uniswap for offering illegal digital asset derivatives trading.$175k fine imposed. Case dropped.

IMO: Wording is bullish and a change from hostile enforcement to rewarding "cooperation" with light fines.

This pertained… pic.twitter.com/M59JJWYZfL
— MartyParty (@martypartymusic) September 4, 2024

Some tokens offered 2:1 leverage on commodities like BTC and ETH.

CFTC Commissioner Summer Mersinger dissented, criticizing the case as “regulation through enforcement” and highlighting the minimal fine.

CFTC Commissioner Mersinger strikes again, this time defending Uniswap https://t.co/iglKsLicLC
— Blockworks (@Blockworks_) September 4, 2024

She also noted Uniswap had taken steps to limit such trading.

In a separate development, Uniswap Labs faces potential action from the Securities and Exchange Commission (SEC) after receiving a Wells Notice in April, indicating a possible future lawsuit.