SEC, known for its aggressive lawsuits regarding cryptocurrencies, is not the only regulatory body in America. CFTC also takes action by detecting violations in the futures market. Just now, the institution issued an order for Uniswap, demanding a $175,000 fine and cessation of the violation.
Uniswap (UNI) and CFTC
Uniswap, one of the largest DeFi platforms, is currently supported by Uniswap Labs. According to the CFTC, the DeFi platform allows leveraged trading without permission, violating regulations. Therefore, it must pay a $175,000 fine and cease violating the Commodity Exchange Act (CEA).
CFTC Enforcement Director Ian McGinley said:
“Today’s action once again shows that the Enforcement Division will vigorously enforce the CEA as digital asset platforms and DeFi ecosystems evolve. DeFi platforms must ensure their services comply with the law.”
The UNI Coin price fell below $6.2 and then returned to $6.45. Uncertainty about compliance and whether US citizens will be restricted from accessing the protocol may increase volatility in the coming hours.
