Uniswap

DeFi

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    <h4 class="relative p-1 rounded-sm flex items-center justify-center bg-token-main-surface-primary text-token-text-primary h-8 w-8"><strong>As part of <a href="https://www.cftc.gov/PressRoom/PressReleases/8961-24" target="_blank" rel="noopener">the settlement</a>, Uniswap Labs agreed to pay a $175,000 civil penalty.</strong></h4> 
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     The company also agreed to cease its violations of the Commodity Exchange Act (CEA). Let’s discover more about this important news for Uniswap.
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<h5><strong>Uniswap Settles for $175K, Agrees to Cease CEA Violations</strong></h5> 
<p>The CFTC’s enforcement division, led by Director Ian McGinley, emphasized the agency’s commitment to enforcing the CEA as digital asset platforms and DeFi ecosystems continue to evolve. McGinley stressed the need for DeFi operators to ensure their transactions comply with the law.</p> 
<p>The enforcement action has sparked dissent among some CFTC commissioners. Summer Mersinger <a href="https://www.cftc.gov/PressRoom/SpeechesTestimony/mersingerstatement090424" target="_blank" rel="noopener">criticized</a> the CFTC’s approach, accusing the agency of “regulation through enforcement” rather than through established rulemaking processes. This is what Uniswap’s CLO said:</p> 
<p><img decoding="async" class="wp-image-149942 aligncenter" src="https://www.altcoinbuzz.io/wp-content/uploads/2024/09/vxcvcbnvbmnbnbm-300x113.png" alt="" width="640" height="241" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2024/09/vxcvcbnvbmnbnbm-300x113.png 300w, https://www.altcoinbuzz.io/wp-content/uploads/2024/09/vxcvcbnvbmnbnbm.png 386w" sizes="(max-width: 640px) 100vw, 640px"></p> 
<h6 style="text-align: center;"><strong>Source: <a href="https://x.com/MinarikLaw/status/1831363800542634459" target="_blank" rel="noopener">X</a></strong></h6> 
<p>Mersinger expressed concerns about the lack of clarity and transparency in the CFTC’s handling of the case. Commissioner Caroline Pham also voiced objections, <a href="https://www.cftc.gov/PressRoom/SpeechesTestimony/phamstatement090424" target="_blank" rel="noopener">arguing</a> that the CFTC’s settlement order constituted a “violation of the Administrative Procedure Act (APA).”</p> 
<h5><strong>More About Uniswap and The CFTC</strong></h5> 
<p>Pham questioned the basis for charging Uniswap, noting that the evidence seemed insufficient and only revolved around the term “leveraged” in the names of the tokens involved.</p> 
<p><img decoding="async" class="wp-image-149945 aligncenter" src="https://www.altcoinbuzz.io/wp-content/uploads/2024/09/vcxvfdfdbgdb-218x300.jpg" alt="" width="512" height="704" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2024/09/vcxvfdfdbgdb-218x300.jpg 218w, https://www.altcoinbuzz.io/wp-content/uploads/2024/09/vcxvfdfdbgdb-305x420.jpg 305w, https://www.altcoinbuzz.io/wp-content/uploads/2024/09/vcxvfdfdbgdb.jpg 390w" sizes="(max-width: 512px) 100vw, 512px"></p> 
<h6 style="text-align: center;"><strong>Source: <a href="https://x.com/Orlando_btc/status/1831374103854620689" target="_blank" rel="noopener">X</a></strong></h6> 
<p>The CFTC’s order did not specify the issuer of the leveraged tokens, but they appear to be associated with Index Coop, a DeFi protocol known for its leveraged yield strategies. The CFTC regulates commodity derivatives products and typically does not oversee spot commodity markets or securities.</p> 
<p>The agency clarified that, among the numerous liquidity pools on Uniswap, a small number of leveraged tokens qualify as “leveraged or margined commodity transactions” under its jurisdiction.</p> 
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<h6><strong>Disclaimer</strong></h6> 
<p>The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted risk tolerance levels of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.</p> 
<p>The post <a href="https://www.altcoinbuzz.io/cryptocurrency-news/cftc-settles-with-uniswap-over-illegal-derivatives-trading/">CFTC Settles with Uniswap Over Illegal Derivatives Trading</a> appeared first on <a href="https://www.altcoinbuzz.io">Altcoin Buzz</a>.</p>

CFTC Settles with Uniswap Over Illegal Derivatives Trading

Altcoin Buzz

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