CFTC Comes After DeFi Firms: 'Smart Contracts Don't Make Unlawful Transactions Legal'
Portfolio Pulse from Murtuza Merchant
The U.S. Commodity Futures Trading Commission (CFTC) has charged three decentralized finance (DeFi) firms, Opyn, Inc., ZeroEx, Inc., and Deridex, Inc., for various violations including failure to register and facilitating illicit transactions. The firms have been penalized with civil monetary fines of $250,000, $200,000, and $100,000 respectively and ordered to halt further violations of the Commodity Exchange Act and related CFTC regulations.
September 08, 2023 | 3:29 pm
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NEGATIVE IMPACT
The CFTC's action against DeFi firms, including ZeroEx which traded tokens providing leveraged exposure to Bitcoin, may impact Bitcoin's price in the short term.
The regulatory action against DeFi firms, particularly ZeroEx which traded tokens providing leveraged exposure to Bitcoin, may create uncertainty in the market, potentially leading to a short-term negative impact on Bitcoin's price.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
The CFTC's action against DeFi firms, including ZeroEx which traded tokens providing leveraged exposure to Ether, may impact Ether's price in the short term.
The regulatory action against DeFi firms, particularly ZeroEx which traded tokens providing leveraged exposure to Ether, may create uncertainty in the market, potentially leading to a short-term negative impact on Ether's price.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50