This Week in Crypto: The CFTC Comes for DeFi

This Week in Crypto: The CFTC Comes for DeFi

Keep up with the top crypto headlines in our weekly recap

Hello Investors,

In this edition we explore the CFTC fines, Ripple’s acquisition of Fortress Trust, an AI powered order type, an environmentally-friendly blockchain and more!

Safe Trading,

The N+1 Team


😱 The CFTC Comes for DeFi

On September 7th, the Commodity Futures Trading Commission (CFTC) announced a combination of fines and settlements against the operators of DeFi protocols Opyn, ZeroEx and Deridex. The CFTC asserts that the operators offered illegal digital asset derivatives trading. The fines range from $100,000 to $250,000 and include cease and desist orders. The Director of Enforcement, lan McGinley, stated that “somewhere along the way, DeFi operators got the idea that unlawful transactions become lawful when facilitated by smart contracts”.

💰Ripple Acquires Fortress Trust

Ripple has acquired Fortress Trust, a company that supports enterprises in building and scaling compliant custody and payment infrastructure. Ripple did not share the details of the deal but the purchase may allow the company to expand beyond its functions as a cross border payment firm. This follows Ripple’s acquisition of another digital asset infrastructure company, Metaco, for $250 million in May of this year.


🤖 SEC Approves AI Powered Order Type for Nasdaq

Nasdaq announced its newest development on Friday: a Midpoint Extended Life Order (M-ELO). This market order, which allows stock to be bought or sold, is powered by AI and is meant to adjust to real-time market conditions. Nasdaq stated that the AI will enhance both liquidity and execution. The Securities and Exchange Commission’s (SEC) approval signifies another step towards the integration of AI and the investing world.

🌱 Cudo and Kyoto Eco-Friendly Collaboration

Cudo Compute has joined forces with Kyoto Protocol to optimize cloud computing power and focus on green initiatives in the crypto space. Cudo is a cloud computing network focused on democratized platforms while Kyoto has created a carbon-negative blockchain. Cudo intends to contribute the infrastructure for Kyoto’s decentralized node network, supporting the expansion of their blockchain. This partnership is a valuable step in eco-friendly Web3 initiatives.


⛓️ Blockchain Proposal by MakerDAO Co-founder

Rune Christensen, a cofounder of MakerDAO, recently proposed a blockchain called NewChain. NewChain would reimplement the Maker Protocol which should make the ecosystem more secure and efficient. In the proposal, Christensen suggested using Solana as the basis for NewChain. This step is reportedly the last stage in “Endgame”, MakerDAO’s plan to create an “emergent, community driven ecosystem”.


📚 N+1 Recommendations

The N+1 reading and media recommendations are sourced from our team of experts and offer weekly suggestions for learning more about blockchain, crypto, finance and technology.

This weeks recommendation: ‘The challenges are real’: TUC taskforce to examine AI threat to workers’ rights (Article by The Guardian).

📊Charts of the Week

The Bitcoin Halving Cycle happens every ~4 years (210,000 blocks)


The Bitcoin Price Broke Below Its 200-Week Moving Average In August. Source: Ark Invest

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