CFTC Fines Uniswap Labs $175,000

The Commodity Futures Trading Commission (CFTC) has fined Uniswap Labs $175,000 for offering digital asset derivatives through a DeFi protocol.

.@CFTC Issues Order Against Uniswap Labs for Offering Illegal Digital Asset Derivatives Trading: https://t.co/Io0VP7c18U

— CFTC (@CFTC) September 4, 2024

The company is also required to refrain from further violations of the Commodity Exchange Act.

The regulator’s claims concerned a “limited number” of leveraged tokens traded on the decentralized exchange. The CFTC classified these products as derivatives.

The Commission noted that such “commodity transactions” without actual delivery within 28 days can only be offered to retail users by market participants registered with the CFTC. Uniswap Labs is not among them.

According to the statement, the regulator acknowledged the company’s substantial cooperation in the investigation and reduced the civil penalty.

Back in May, Uniswap Labs urged the U.S. Securities and Exchange Commission to reconsider a potential lawsuit.