CFTC issued a filing and settling charge against Uniswap Labs.
The filing orders Uniswap Labs to pay $175,000 as a civil monetary penalty fee.
Commissioner Summer Mersinger disagreed with the CFTC's charges, slamming the "regulation by enforcement" approach.
Uniswap Labs (UNI) received a $175,000 fine from the Commodity and Futures Trading Commission (CFTC) on Wednesday after the regulator issued a filing and settling charge against the decentralized exchange.
Uniswap Labs hit with $175,000 fine
Uniswap Labs, the team behind decentralized exchange (DEX) Uniswap, received an order from the CFTC accusing them of violating the Commodity Exchange Act (CEA). In a report on Wednesday, the CFTC alleged that Uniswap engaged in offering leveraged or margined retail commodity transactions using digital assets.
The regulator stated that Uniswap Labs permitted the trading of digital assets through hundreds of liquidity pools made available through a web platform. These liquidity pools provided exposure to leveraged assets such as Bitcoin (BTC) and Ethereum (ETH), which Uniswap Labs ought to have registered as contract markets with the CFTC.
Accordingly, Uniswap Labs is required to pay a civil monetary penalty fee of $175,000 and desist from violating the CEA. The report added that Uniswap Labs has been fully cooperative as they complied with the regulator's Division of Enforcement throughout the investigation.
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