The CFTC issued an order against Uniswap Labs for offering illegal leveraged or margined digital asset transactions, in violation of the Commodity Exchange Act (CEA).

Uniswap Labs allowed users to trade digital assets, including leveraged tokens, through its Ethereum-based protocol without proper CFTC registration.

The company must pay a $175,000 penalty and cease further violations. The CFTC acknowledged Uniswap’s cooperation, which contributed to a reduced penalty.