## Uniswap Labs Penalized for Unlawfully Offering Crypto Derivatives Trading, CFTC Reveals
The Commodity Futures Trading Commission (CFTC) has issued an enforcement order against Uniswap Labs, a prominent player in the decentralized finance (DeFi) realm. The regulatory body rebuked the crypto-oriented platform for engaging in “illicitly providing leveraged or margined retail commodity transactions in digital assets through a decentralized digital asset trading protocol.”
Consequently, the CFTC has levied a fine of $175,000 on Uniswap Labs and mandated that the platform cease any further breaches of the Commodity Exchange Act. Ian McGinley, the Director of Enforcement, remarked,
*”Today’s actions underscore the commitment of the Enforcement Division to rigorously uphold the CEA as digital asset platforms and DeFi ecosystems progress.”*
### Uniswap in the Crosshairs for Commodities Listing?
Regarding the infraction, the order elucidated that Uniswap enabled users to trade cryptocurrencies like Ether (ETH) and Bitcoin (BTC) with a leverage ratio of approximately 2:1. In response, the agency reiterated that both Ether (ETH) and Bitcoin (BTC) were regarded as commodities, thereby falling under its jurisdiction. The order elaborated,
*”The Respondent breached Section 4(a) of the Act, 7 U.S.C. § 6(a), by proposing to engage in (…) activities across the United States, its territories, or possessions, with the intent of seeking or accepting orders from (…) customers who were not authorized contract participants or eligible commercial entities”*
Notably, the market reaction to this announcement seemed subdued, with UNI’s price showing minimal fluctuations. At the time of reporting, CoinMarketCap listed the coin at $6.52, boasting a market capitalization exceeding $3 billion. The hourly chart depicted a marginal 1.07% dip, while the daily chart exhibited a positive trajectory of 7.25%.
*Ongoing developments to be monitored closely.*