The United States Commodity Futures Trading Commission (CFTC) has initiated regulatory action against three major decentralized finance (DeFi) protocols, Opyn, 0x, and Deridex. 

The commodities regulator has handed out hefty fines of $250,000, $200,000, and $100,000, respectively, on the three protocols. 

Commodity Futures Trading Commission Swings Into Action 

Regulatory action against the three decentralized finance protocols was taken after they allegedly failed to register various derivatives trading offerings, with the CFTC charging them with illegal digital asset derivatives trading. The CFTC announced that it had issued orders against Opyn, 0x, and Deridex in a statement released on the 8th of September. 

“The Commodity Futures Trading Commission today continued its enforcement focus in the digital asset decentralized finance (DeFi) space by issuing orders simultaneously filing and settling charges against Opyn, Inc., a Delaware-registered company based in California; ZeroEx, Inc., a Delaware company based in California; and Deridex, Inc., a Delaware company based in North Carolina.”

More specifically, 0x was charged by the CFTC for a token issued by a third party that was not affiliated with the protocol. This third part provided traders a 2:1 leveraged exposure to digital assets such as Bitcoin and ETH. Meanwhile, Opyn and Deridex were charged for failing to register as a swap execution facility or a designated contract market and also failing to register as a futures commodity merchant. Additionally, the two protocols failed to comply with customer provisions set out in the Bank Secrecy Act. 

The three firms were also charged with illegally offering leveraged and marginal retail commodity transactions in digital assets. 

“Deridex and Opyn are charged with failing to register as a swap execution facility (SEF) or designated contract market (DCM), failing to register as a futures commission merchant (FCM), and failing to adopt a customer identification program as part of a Bank Secrecy Act compliance program, as required of FCMs. ZeroEx, Opyn, and Deridex are also charged with illegally offering leveraged and margined retail commodity transactions in digital assets.”

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Author: Amara Khatri

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