Comment
On September 7, 2023, the Commodity Futures Trading Commission (CFTC) issued three enforcement settlement orders against developers of decentralized finance (DeFi) protocols. The orders charge Opyn, Inc., Deridex, Inc., and ZeroEx, Inc. (0x) with illegally offering leveraged and margined retail commodity transactions in digital assets through their DeFi protocols. Opyn and Deridex were also charged for operating as unregistered swap execution facilities and engaging in activities that can only lawfully be performed by registered futures commission merchants (FCMs), and for failing to conduct know-your-customer diligence.