The United States Commodity Futures Trading Commission (CFTC) has initiated regulatory action against three decentralized finance (DeFi) protocols.
Opyn, ZeroEx And Deridex Have Been Accused Of Failing To Register Derivatives Trading Offerings
The United States Commodity Futures Trading Commission (CFTC) has initiated regulatory action against three decentralized finance (DeFi) protocols, accusing them of failing to register various derivatives trading offerings. In a statement released on September 8, the CFTC announced that it had issued orders against Opyn, ZeroEx, and Deridex.
Deridex and Opyn were charged with failing to register as a swap execution facility or designated contract market, as well as a futures commission merchant. Furthermore, both protocols were found to be in violation of consumer protections established in the Bank Secrecy Act. In addition, all three organizations were charged with providing leverage and margin retail commodities transactions in digital assets without the appropriate authorisation.
Opyn is a DeFi investment strategy platform with $23 million in total locked volume, while ZeroEx is an Ethereum-based decentralized exchange, and Deridex is an Algorand-powered derivatives platform which closed down in February.
As part of the regulatory orders, Opyn, ZeroEx, and Deridex are required to pay penalties of $250,000, $200,000, and $100,000, respectively. They must also cease and desist from violating the Commodity Exchange Act and the CFTC's regulations.
Ian McGinley, the CFTC's director of enforcement stated that while the DeFi space is innovative and complex, the Division of Enforcement will remain proactive in pursuing unregistered platforms that allow U.S. residents to trade digital asset derivatives.
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