Followed its supposed “sweeping victory” against Ooki DAO, the U.S. Commodity Futures Trading Commission (CFTC) has continued to target more defaulters in the DeFi space. On September 7, the agency announced that it had taken enforcement actions against three decentralized finance (DeFi) trading platforms: Opyn, 0x, and Deridex.
The CFTC alleged that the three platforms had illegally offered leveraged and margined retail commodity transactions using digital assets. The agency also accused Opyn and Deridex of failing to properly register with the CFTC as swap execution facilities, designated contract markets, and futures commission merchants.
Opyn is a DeFi marketplace that allows users to trade options on Ethereum. 0x is a decentralized exchange that allows users to trade Ethereum-based tokens. Deridex is a DeFi platform that allows users to trade margined derivatives contracts.
The CFTC is ordering Opyn, 0x, and Deridex to cease the activity and pay penalties of $250,000, $200,000, and $100,000, respectively. The companies have agreed to these terms to settle the charges.
The CFTC’s actions are a sign that the agency is taking a more aggressive approach to regulating DeFi. The agency has been concerned about the lack of oversight in the DeFi sector, which has led to some platforms operating illegally.
The CFTC’s actions could have a chilling effect on the DeFi sector, but they could also help to legitimize the sector and attract more institutional investors. It remains to be seen how the DeFi community will react to the CFTC’s actions.
In addition to the enforcement actions against Opyn, 0x, and Deridex, the CFTC also issued a warning to the DeFi community about the risks of leveraged and margined trading. The agency warned that these types of transactions can be risky and can lead to significant losses.
The CFTC’s actions are a reminder that the agency is still playing a role in regulating the cryptocurrency industry, even as the industry continues to evolve. The agency is likely to continue to take a close look at DeFi in the coming months and years.
