Uniswap

Chair

DeFi

Spot

<ul>
 <li>Uniswap has already stopped trading the particular leveraged tokens that prompted the investigation.</li>
 <li>The SEC has charged Uniswap Labs of running an unlicensed securities exchange.</li>
</ul>
In a statement made public on September 4th, the Uniswap Labs, a developer of decentralized exchange (DEX), was charged by the US Commodity Futures Trading Commission (<a href="https://thenewscrypto.com/gemini-urges-cftc-to-abandon-event-contracts-on-prediction-markets-ban-proposal/" target="_blank" rel="noopener noreferrer nofollow">CFTC</a>) with the unlawful sale of leveraged cryptocurrency trading to retail investors in the US.
As part of the settlement, <a href="https://thenewscrypto.com/uniswap-labs-acquires-popular-blockchain-based-crypto-the-game/" target="_blank" rel="noopener noreferrer nofollow">Uniswap Labs</a> complied with an order that the DeFi developer pay a $175,000 fine. And stop breaching the Commodity Exchange Act (CEA), according to the CFTC.
<h3 class="wp-block-heading" id="h-regulation-by-enforcement">Regulation by Enforcement</h3>
Moreover, as digital asset platforms and DeFi ecosystems expand, the CEA will be actively enforced by the CFTC’s enforcement division, according to a statement by Ian McGinley, director of enforcement for the CFTC. Also, operators of DeFi protocols must use extreme caution to prevent illegal activities, as per the Director.
In a statement on September 4th, one of the five commissioners of the CFTC, Summer Mersinger, voiced disapproval of the agency’s approach to the enforcement action. Which the commissioner characterized as a regulation by enforcement.
Furthermore, Uniswap has already stopped trading the particular leveraged tokens that prompted the CFTC investigation, according to Mersinger. Also, among the tokens included in the CFTC’s order from September 4th are the 2x Flexible Leverage Index tokens (BTC2XFLI) and ETH2XFLI, among others.
Index Coop, a DeFi protocol that focuses on leveraged yield strategies, seems to be the developer of the tokens. While the order doesn’t specify who is issuing them.
Unlike spot commodity markets and securities, commodities derivatives products are regulated by the Commodity Futures Trading Commission (CFTC). “The vast majority” of digital assets are considered securities under US law, according to US SEC Chair <a href="https://www.sec.gov/about/sec-commissioners/gary-gensler" target="_blank" rel="noopener noreferrer nofollow">Gary Gensler</a>. The <a href="http://sec.gov" target="_blank" rel="noopener noreferrer nofollow">SEC</a> has been charging Uniswap Labs of running an unlicensed securities exchange since April.
Highlighted Crypto News Today:
<a href="https://thenewscrypto.com/us-spot-bitcoin-etfs-see-288m-net-outflows-amid-market-selloff/" target="_blank" rel="noopener noreferrer nofollow">US Spot Bitcoin ETFs See $288M Net Outflows Amid Market Selloff</a>

Uniswap Labs Fined $175K by US CFTC as Part of Settlement

Table of Contents

TheNewsCrypto

Other articles published on Sep 4, 2024

Bitcoin Faces Potential Liquidation Risks

FBI Alerts Crypto Sector to North Korea’s Advanced Threats

edgeX Siap Guncang Industri Perdagangan Derivatif Terpusat

Common European Data Spaces: Fostering Data Innovation & Collaboration in the EU

Total crypto market sinks below $2T as analysts eye Bitcoin reversal below $54K

Dramatic Bitcoin Crash Anticipated – Financial Markets on the Brink of Crisis

Join our free newsletter for daily crypto updates!