Uniswap, a decentralized exchange platform, has announced that it will be paying USD 175,000 to settle charges from the US Commodity Futures Trading Commission (CFTC).

The commission alleged that the protocol offered illegal leveraged and margined commodities transactions via its third-party token marketplace. Furthermore, Uniswap was not permitted to offer leveraged trading products, as it was not registered as a designated contract market with the CFTC. 

In addition to the settlement, the company has also taken steps to try and block users from trading leveraged tokens.

Analyst QuickTake: Uniswap has undergone a series of regulatory battles with multiple US government agencies over this past year. This news comes just over four months after it received a Wells notice from the SEC stating its intent to pursue an enforcement action on allegations that the exchange was offering unregistered securities. Notably, the company has fought back against all charges thus far, even claiming that the SEC's legal arguments were "weak" and that it did not meet the commission’s definition of an exchange.