TechFlow news — On September 4, according to an official announcement, the U.S. Commodity Futures Trading Commission (CFTC) issued a penalty order against Uniswap Labs, accusing it of illegally offering leveraged or margined retail commodity transactions through its decentralized digital asset trading protocol. Uniswap Labs has been ordered to pay a $175,000 civil monetary penalty and to cease violations of the Commodity Exchange Act (CEA).
Ian McGinley, Director of the CFTC’s Division of Enforcement, stated that this action reaffirms the Division’s commitment to enforcing the CEA in response to the evolution of digital asset platforms and the DeFi ecosystem. He emphasized that DeFi operators must remain vigilant to ensure their activities comply with applicable laws.
Uniswap Labs developed and deployed a blockchain-based digital asset protocol enabling non-eligible contract participants and institutional users both within and outside the United States to conduct digital asset transactions via the Ethereum blockchain. The protocol also facilitated a limited number of leveraged token transactions, which the CFTC determined constituted leveraged or margined commodity transactions that were not subject to actual delivery within 28 days.
