The United States Commodity Futures Trading Commission (CFTC) is determined to keep on implementing stringent crypto regulations. The US regulatory agency recently declared settlements with several DeFi firms, as mentioned in its press release of the 7th of September, 2023. On the other hand, the Securities and Exchange Commission maintains its enforcement actions. The securities regulator of the US continuously targets crypto entities.
CFTC Performs Settlement with Some DeFi Companies
Ian McGinley, the Director of Enforcement at CFTC, remarked on this development. He stated that the DeFi entities got the idea that illegal transfers turn into legalized when smart contracts facilitate them. However, the executive added that this is the opposite of the reality. Primarily, the CFTC is aimed at ZeroEx Inc. (the platform that is popular for developing 0x Protocol).
The company mentioned that ZeroEx additionally provided a frontend named Matcha. It traded 3rd-party coins that offered leveraged exposure to ETH, BTC, as well as the rest of the tokens. The CFTC pointed out that the respective leveraged coins are known as commodities. In addition to this, the agency disclosed that only the registered exchanges can offer them.
CFTC’s Targeted ZeroEX Inc. Sees a Huge Slump in Its ZRX Token’s Price
Once 0x had the position of a promising foundation for decentralized exchanges on Ethereum. This occurred before the present leaders like Uniswap dominated the field. Although the trading volume of long terms is not available, market rankings offer a slight signal of the former popularity of 0X. Back in the year 2018, the ZRX token of 0x often got a significant position among the thirty biggest tokens in terms of market capitalization.
At the moment, the rank of ZRX is below the biggest seven hundred crypto tokens. The UNI token of Uniswap currently stands at the twenty-fourth position in this respect. Hence, the latest action of the CFTC is crucial as it aims at one of the previous top contenders of DeFi.
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