The US Commodity Futures Trading Commission (CFTC) has initiated regulatory actions against three decentralized finance (DeFi) protocols, alleging their failure to register various derivatives trading products. In a statement released on September 8, the CFTC disclosed the enforcement orders against Opyn, ZeroEx , and Deridex. These actions highlight the increasing scrutiny of the DeFi sector by regulatory authorities.
Opyn and Deridex are both charged with failing to register as a swap execution facility or designated contract market and failing to register as a futures commission merchant. Additionally, they are accused of not complying with customer terms outlined in the Bank Secrecy Act. The CFTC has It is also alleged that these three firms were illegally providing digital asset leverage and margin retail commodity trading.
To address these regulatory breaches, the CFTC's orders mandate Opyn, ZeroEx, and Deridex to pay fines of $250,000, $200,000, and $100,000, respectively. Furthermore, they must cease violations of the Commodity Exchange Act and CFTC regulations. Opyn and ZeroEx have consented to settle the allegations.
Ian McGinley, the Director of Enforcement at the CFTC, stressed the need for DeFi platforms to operate within the bounds of the law. He emphasized that DeFi operators must not assume that illegal activities can transform into legal ones through smart contracts. McGinley noted that while the DeFi space is novel, complex, and evolving, law enforcement will adapt to it and aggressively pursue operators of unregistered platforms that facilitate digital asset derivative trading by US residents.
Opyn is a DeFi platform specializing in investment strategies and currently boasts a total trading volume (TVL) of $23 million locked within its protocol. ZeroEx, on the other hand, is a decentralized exchange built on the Ethereum blockchain. Deridex, which operates on the Algorand network, is a derivatives platform that faced an abrupt shutdown in February, causing its TVL to decline from approximately $150,000 to $133 as of September 8, according to DefiLlama.
