Uniswap Labs, the operator behind the decentralized crypto exchange Uniswap, has been fined $175,000 by the U.S. Commodity Futures Trading Commission (CFTC) for allegedly offering illegal leveraged retail trading in digital assets. The fine is part of a settlement agreement in which the company was also ordered to cease violating the Commodity Exchange Act (CEA).
The CFTC’s investigation centered on Uniswap’s platform, which allows users to trade digital assets — including leveraged tokens — without intermediaries through decentralized finance (DeFi) protocols. The regulator alleged that some trades involved leveraged or margined commodity transactions, which under the CEA can only be offered on CFTC-registered exchanges. Uniswap Labs did not have such registration.
Despite the violations, the CFTC acknowledged Uniswap’s cooperation during the investigation, resulting in a reduced penalty.
Ian McGinley, the CFTC’s director of enforcement, emphasized the importance of regulatory compliance in the evolving DeFi space. “Today’s action demonstrates once again that the Division of Enforcement will vigorously enforce the CEA as digital asset platforms and DeFi ecosystems evolve,” McGinley said. “DeFi operators must ensure their transactions comply with the law.”
Katherine Minarik, Uniswap’s chief legal officer, addressed the settlement by noting that the CFTC’s concerns involved only a small fraction of trades on the platform, with no admission of wrongdoing by Uniswap. “We remain focused on building the future of DeFi for everyone and taking on the fights necessary to make that happen,” Minarik added.
However, not all CFTC commissioners supported the settlement. Commissioners Summer Mersinger and Caroline Pham issued dissenting opinions. Mersinger criticized the settlement as an example of “regulation through enforcement,” arguing that Uniswap had already blocked the problematic tokens before the CFTC brought charges. Pham expressed concern over what she called a “legally simplistic” approach by the CFTC, accusing the agency of rushing to claim jurisdiction over DeFi instead of focusing on more clear-cut cases of fraud.
This case is part of a broader trend in which both the CFTC and the U.S. Securities and Exchange Commission (SEC) have taken action against crypto exchanges and DeFi platforms. Earlier this year, Uniswap received a Wells notice from the SEC, signaling that the agency is preparing its own enforcement action.
While some in the crypto industry call for clearer regulations from Congress to prevent stifling innovation, critics argue that digital asset platforms must comply with the existing legal framework.
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