Key facts:
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Regulator sends message to DeFi ecosystem about need to comply with regulations.
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Following the news, the exchange’s native UNI token experienced a sudden drop.
The US Commodity Futures Trading Commission (CFTC) has fined Uniswap Labs, the company behind the DeFi platform Uniswap, over $170,000.
In a releasethe federal office argues that the monetary sanction is due to the fact that the company offered leveraged retail commodity transactions to cryptocurrencies illegally. This sanction forces Uniswap to cease and desist from violating the Commodity Exchange Act (CEA).
The CFTC has been monitoring Uniswap for several months, reflecting growing attention towards Cryptocurrency platforms and Bitcoin-criptomonedas-finanzas-stablecoin-exchanges-prestamos/” target=”_blank” rel=”noreferrer noopener”>DeFi. Ian McGinley, the CFTC’s Director of Enforcement, comments that the action demonstrates that his Division “will vigorously enforce the CEA as digital asset platforms and DeFi ecosystems evolve.”
McGinley stressed that “DeFi operators must be vigilant to ensure that transactions comply with the law.”
According to the federal office’s indictment, Uniswap Labs facilitated access to its protocol through a web interface that allowed users to trade on hundreds of liquidity pools. Among these, Tokens were included that offered leveraged exposure to assets such as bitcoin (BTC) and ether (ETH), among hundreds of other tokens and cryptocurrencies.
The CFTC considers these tokens as leveraged commodity transactions that did not result in actual delivery within 28 days, which can only be offered on CFTC-regulated exchanges.
The order also acknowledges Uniswap Labs’ cooperation during the investigation, which resulted in a reduction of the civil monetary penalty against this company, behind one of the most prominent exchanges in the DeFi ecosystem, with more than USD 59 million in daily trading volume.
At the time of writing, Uniswap has not issued any comments regarding the CFTC penalty against it. In its X account there is no exist publications on the subject. Not even on its official website.
This action by the CFTC underscores the growing regulation in the sector, similar to the intentions of the Securities and Exchange Commission (SEC), another US federal agency, to take action against Uniswapas reported by CriptoNoticias.
Following the news, the exchange’s native UNI token experienced a sudden drop from $6.61 to $6.38, reflecting the market’s sensitivity to regulatory news. However, the token’s price was quick to react, rebounding strongly to stabilize around $6.58according to the data provided by CoinMarketCap.
UNI price had a sudden drop but then recovered. Source: CoinMarketCap.
This move suggests a quick recovery and investor confidence in the future of Uniswap, despite the fine imposed by the CFTC.
However, the monetary sanction sends a clear message to the entire DeFi ecosystem on the need to comply with existing regulations. The CFTC has shown its willingness to sanction platforms that do not comply with commodity trading laws, setting a precedent for future regulations in the field of cryptocurrencies and DeFi.
This article was created using artificial intelligence and edited by a human on the editorial staff.
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