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CFTC Settles with Uniswap Over Illegal Derivatives Trading
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As part of the settlement, Uniswap Labs agreed to pay a $175,000 civil penalty.
Uniswap Settles for $175K, Agrees to Cease CEA Violations
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.
The enforcement action has sparked dissent among some CFTC commissioners. Summer Mersinger criticized the CFTC’s approach, accusing the agency of “regulation through enforcement” rather than through established rulemaking processes. This is what Uniswap’s CLO said:
Source: X
Mersinger expressed concerns about the lack of clarity and transparency in the CFTC’s handling of the case. Commissioner Caroline Pham also voiced objections, arguing that the CFTC’s settlement order constituted a “violation of the Administrative Procedure Act (APA).”
More About Uniswap and The CFTC
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.
Source: X
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.
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.
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The post CFTC Settles with Uniswap Over Illegal Derivatives Trading appeared first on Altcoin Buzz.
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September 5, 2024 at 08:45AM
September 5, 2024 at 08:45AM
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