Uniswap Settles With CFTC Over Leveraged Retail Crypto Trading

The decentralized crypto exchange agrees to pay a $175,000 fine without agreeing or denying the findings.

Uniswap Labs, the largest decentralized crypto exchange, agreed to settle charges by the Commodity Futures Trading Commission that it illegally allowed small individual investors to make leveraged crypto bets.

The CFTC alleged that Uniswap allowed users to trade tokens that provided leveraged exposure to assets such as bitcoin and ether, without registering with the CFTC as a contract market. Uniswap agreed to pay a $175,000 fine without agreeing or denying the findings.

Uniswap chief legal officer Katherine Minarik said on X that the company is glad to resolve the matter with the CFTC, which was about a “fraction of a percent of trading” through its interface. The company disclosed in April that it received a Wells notice from the Securities and Exchange Commission on potential legal action.