Uniswap Labs has settled with the U.S. Commodity Futures Trading Commission (CFTC), agreeing to pay a $175,000 penalty due to allegations of unauthorised leverage and margin trading involving digital assets.

The CFTC claimed that Uniswap's decentralised protocol allowed these transactions without proper regulatory oversight, violating the Commodity Exchange Act by not being registered as a designated contract market. Users reportedly engaged in around $21.5 million worth of leveraged token trades during the period in question, which included tokens tied to commodities like Bitcoin and Ether.

Although the fine is relatively modest, it reflects Uniswap's cooperation throughout the investigation, yet it has sparked controversy among CFTC commissioners who view the case as an example of "regulation through enforcement." This raises concerns about the implications for decentralised finance (DeFi) platforms. Uniswap Labs, while not admitting to the charges, emphasized its commitment to compliance and innovation in the DeFi space.

This settlement follows a Wells notice from the SEC earlier this year, indicating that Uniswap may face additional regulatory scrutiny in the future.

Mt. Gox's Mark Karpeles Long Awaited Crypto Return🏛

Mark Karpeles, the former CEO of the now-defunct Mt. Gox exchange, is preparing to launch a new cryptocurrency trading platform called EllipX in Poland this September, marking his return to the crypto industry after the infamous collapse of Mt. Gox.

The platform will initially cater to European users, with plans for global expansion, and will offer cryptocurrency trading alongside future integrations of banking and fiat currency services. Karpeles is committed to compliance with the European Union's Markets in Crypto-Assets (MiCA) regulations, aiming to create a secure and transparent trading environment, supported by regular third-party audits to enhance user trust.

To reconnect with former Mt. Gox customers, Karpeles has announced a 50% discount on trading fees for those affected by the exchange's collapse, linked to non-fungible tokens (NFTs) he previously issued. He believes that advancements in cryptocurrency security since the Mt. Gox incident will enable safer storage of digital assets. Karpeles envisions EllipX as a fresh start in the crypto space, emphasizing transparency and user-friendliness, and aims to set a new industry standard by addressing shortcomings he perceives in existing platforms.

Magic Eden Goes U.S. 🇺🇸

On September 5, Magic Eden introduced a new platform tailored for U.S. users at magiceden.us, aiming to comply with U.S. regulatory requirements and market conditions while continuing to operate the original site, magiceden.io, for international users.

Starting in September 2024, U.S. users will access the new domain, allowing Magic Eden to better cater to regional needs and streamline operations for a more tailored user experience.

The separation of services has elicited mixed reactions within the NFT community. While some users express concerns over potential differences in features and access between the two platforms, others view the move as a necessary response to regulatory challenges.

This launch comes in the context of ongoing legal troubles for OpenSea, another prominent NFT platform facing lawsuits over copyright and intellectual property issues. Magic Eden's new platform is seen as a strategic step to ensure compliance and provide a user-friendly service in the rapidly evolving NFT landscape, although worries persist regarding possible limitations on services and eligibility for future airdrops due to these regulations.

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Jito Surpasses 13M SOL Milestone 🔓

Jito, the leading staking provider on the Solana network, continues to solidify its position in the sector, experiencing remarkable growth this year with a 107% increase in its SOL-denominated Total Value Locked (TVL).

The platform has distinguished itself from other top crypto protocols by prioritizing innovation, recently launching Liquid Restaking services that enhance its leadership in Solana's DeFi landscape.

Following its achievement of surpassing 12 million SOL in TVL, Jito reached another significant milestone, exceeding 13 million SOL by September 1, according to DeFiLlama data. In just three days after this landmark, the platform added 180,000 SOL to its TVL. This ongoing growth underscores Jito's dominance as Solana's primary staking provider, with Dune Analytics reporting that it now holds 53.4% of the Liquid Staking Token (LST) market share.

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