Welcome back to The Breakdown with me, NLW.

It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.

What's going on, guys? It is Thursday, September 5th, and today we are talking about yet another

crypto government settlement. Before we get into that, however, if you are enjoying the breakdown,

please go subscribe to it, give it a rating, give it a review, or if you want to dive deeper into

the conversation, come join us on the Breakers Discord. You can find a link in the show notes or go

to bit.ly slash breakdown pod. Well, the wave of enforcement actions continues this time with Uniswap reaching a

settlement with the CFTC. Uniswap will pay a fine of $175,000 and agree to prevent derivatives

tokens from trading on their platform. The enforcement action related to tokens issued by third

parties, which represented leveraged

exposure to Ethan Bitcoin. Uniswap is not registered as a contract market, so cannot legally

offer markets in these structured derivatives products according to the CFTC.

CFTC Director of Enforcement, Ian McGinley said, today's action demonstrates once again that

the division of enforcement will vigorously, oh my God, I can't even read any more of these things. Anyways, apparently defy operators should be vigilant to ensure that

transactions comply with the law, et cetera, et cetera, et cetera. Regardless for Uniswap, this is not a big

deal. Tokens with embedded leverage have never been a large portion of their volume, and the fine

is obviously immaterial to their operations. Comments from Uniswap chief legal officer Catherine Minarek seemed nonchalant.

She tweeted,

Today Uniswop Labs resolved as CFTC matters about a fraction of a percent of trading

through our interface of a handful of tokens for a 175K fine and a standard no-admit-no-deny settlement.

We are glad to put this to rest and stay focused on building the future of Defi for all.

Why this matters a little bit more is the broader effect on the DeFi ecosystem.

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