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Uniswap's motion to dismiss the class action lawsuit over fraudulent tokens was fully granted, with the court ruling that the platform is not responsible for third-party actions

A U.S. federal judge ruled to dismiss the remaining state law claims against Uniswap Labs and its founder Hayden Adams, ending a years-long class action lawsuit.The plaintiffs attempted to hold the platform liable for losses incurred from "scam tokens" traded on the Uniswap protocol. Judge Katherine Polk Failla of the Southern District of New York issued the ruling on Monday, dismissing the plaintiffs' second amended complaint "with prejudice," stating that the plaintiffs failed to present a viable legal claim. The court noted that the plaintiffs had multiple opportunities to amend their complaint but still could not demonstrate that Uniswap was responsible for the misconduct of unnamed third-party token issuers.The plaintiffs claimed to have suffered losses due to actions such as "rug pulls" and "pump-and-dump" schemes, arguing that Uniswap "aided fraud" by providing a platform for buyers and sellers to trade. However, the court clearly stated that merely providing a decentralized trading platform does not constitute "substantial assistance" to fraudulent activities. Judge Failla reiterated her previous view that holding developers of smart contract code responsible for the abusive actions of third parties on decentralized platforms is "logically difficult to sustain."The case was initially filed in 2022 and originally included federal securities law claims. The related securities claims were dismissed in 2023, and the Second Circuit Court of Appeals upheld that ruling, remanding the remaining state law claims to the district court for consideration. This ruling signifies the formal conclusion of the case and further tightens the boundaries of state law liability for DeFi platform developers.

The Democratic Party is willing to return to the negotiating table, and there is a breakthrough in the Senate Agriculture Committee's discussions on cryptocurrency legislation

After setbacks in negotiations over cryptocurrency market legislation in the Senate Agriculture Committee, a Democratic senator's aide stated that the Democratic side is still willing to return to the negotiating table to push for a bipartisan compromise.The aide revealed that at the beginning of the new year, Democratic members were "caught off guard" during the negotiations, as the Republican side drafted a new version of the bill without sufficient consultation and originally planned to move directly into the markup process in mid-January. In response, the Democratic side hopes to re-engage with the committee chair, Republican Senator John Boozman's team, before a vote this week to strive for a bipartisan consensus.The Senate Agriculture Committee was originally scheduled to hold a markup and voting session on cryptocurrency legislation this Tuesday, but it has been postponed to Thursday due to severe weather in Washington. Meanwhile, some Democratic lawmakers are actively pushing to restart negotiations to reach a bipartisan-approved text before the hearing.The cryptocurrency market structure bill aims to establish a federal regulatory framework for digital assets, including clarifying the regulatory division between the SEC and CFTC, as well as related disclosure requirements. Analysts point out that, given that both the Senate Banking Committee and the Agriculture Committee need to advance their respective versions of the bill, bipartisan cooperation remains a key prerequisite for the smooth progress of the legislation.
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