In a recent order issued by the U.S. Commodity Futures Trading Commission (CFTC), Uniswap Labs was fined $175,000 for offering illegal digital asset derivatives trading.
This case specifically revolved around Bitcoin and Ethereum leveraged tokens that were deemed leveraged or margined commodity transactions.
According to the CFTC, these tokens were not delivered within 28 days and thus could only be legally offered on a CFTC-registered board of trade, which Uniswap Labs was not.
新地址 0x536…d3132 正在大额囤积 UNI！三小时前从 #Coinbase 提出 141 万枚 UNI，价值 912 万美金🤨
面对 CFTC(美国商品期货交易委员会) 对 Uniswap 的指控，昨晚公布最终只需缴纳 17.5 万美元罚款，使得 $UNI 短时突破 $6.65📈目前已回落至 $6.4
钱包地址 https://t.co/eAzJosCALZ pic.twitter.com/YA9uCnzQJM
— Ai 姨 (@ai_9684xtpa) September 5, 2024
Despite the fine, the wording of the CFTC’s order appears to be relatively bullish for Uniswap and the broader DeFi community. Rather than pursuing harsh penalties, the CFTC recognized Uniswap Labs’ “substantial cooperation” in the investigation, leading to a reduced civil penalty. This signals a potential shift from hostile enforcement to rewarding cooperation with lighter consequences, which could bode well for future regulatory interactions with DeFi projects.
Breaking: Bullish settlement! @CFTC Issues order against @Uniswap for offering illegal digital asset derivatives trading.$175k fine imposed. Case dropped.
IMO: Wording is bullish and a change from hostile enforcement to rewarding "cooperation" with light fines.
This pertained… pic.twitter.com/M59JJWYZfL
— MartyParty (@martypartymusic) September 4, 2024
Uniswap’s UNI Token Price Action To Monitor
In response to the fine, UNI, the native token of Uniswap, briefly surged to $6.65 before retreating to $6.40. The market’s reaction seems optimistic, indicating that investors perceive the fine as a manageable outcome, especially given its relatively low amount.
Further fueling market speculation is an on-chain report showing a new wallet address (0x536…d3132) hoarding large amounts of UNI. Just three hours ago, the address withdrew 1.41 million UNI from Coinbase, valued at over $9.12 million.
Overall, while the fine might seem like a setback, Uniswap’s quick resolution with the CFTC and the market’s positive reaction suggest that the decentralized exchange is poised to move forward, with investors seeing this as a small hiccup rather than a significant obstacle.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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