Uniswap Labs will pay $175,000 to settle charges it offered illegal leveraged and margined commodities transactions, the U.S. Commodity Futures Trading Commission (CFTC) announced. Uniswap developed a user interface and smart contracts that let users trade tokens, including some that provided leveraged exposure to digital assets like bitcoin and ether.
The CFTC said Uniswap did not register as a designated contract market and was not allowed to offer leveraged trading products. CFTC Commissioner Summer Mersinger dissented, saying the case had "all the hallmarks of what we have come to know as regulation through enforcement" and that Uniswap had taken steps to block users from trading leveraged tokens.
Fellow CFTC Commissioner Caroline Pham also dissented, saying the administrative record did not confirm whether the leverage tokens actually offered leverage, and criticizing the regulatory agency's approach to the enforcement action.
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