The United States Commodity Futures Trading Commission (CFTC) has charged decentralized exchange (DEX) developer Uniswap Labs with illegally offering leveraged cryptocurrency trading to US retail investors. According to a Sept. 4 announcement, Uniswap Labs agreed to settle the charges by paying a $175,000 civil penalty and agreeing to cease violating the Commodity Exchange Act (CEA).

The CFTC's enforcement division stated that it will "vigorously enforce the CEA as digital asset platforms and DeFi ecosystems evolve," and that "DeFi operators must be vigilant to ensure that transactions comply with the law." This action highlights the growing regulatory scrutiny surrounding the decentralized finance (DeFi) space, as authorities seek to ensure compliance with existing financial regulations.

However, the CFTC's decision was not unanimous, with Commissioner Summer Mersinger dissenting. Mersinger criticized the agency's "regulation through enforcement" approach, stating that she had hoped the CFTC would consider rulemaking or guidance to help DeFi protocols comply with the law. The dissent underscores the ongoing debates around how to regulate the rapidly evolving DeFi ecosystem.

Source: https://cointelegraph.com/news/cftc-charges-uniswap-illegal-derivatives-trading

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