DeFi trade activity has increased over the past week as a result of the United States Securities and Exchange Commission’s (SEC) legal actions against two prominent centralized crypto exchanges, Binance.US and Coinbase.

The SEC is actively pursuing charges against the decentralized exchange (DEX) ecosystem as well, despite the fact that its enforcement action against centralized exchanges has garnered more attention. Paradigm, a crypto venture capital firm, has criticized the SEC’s strategy and reiterated that DEXs are not securities exchanges.

A complaint against the DeFi protocol PoolTogether has been dismissed by a U.S. district court in a separate legal dispute. The nonfungible token (NFT) auction that raised $1.4 million in 2022 was used by the protocol’s community to pay for its legal defense.

June began with the DeFi market in a high mood, but the momentum faded after the SEC enforcement action in the second week. The majority of the top 100 DeFi tokens traded in the negative, and the total locked value once more dropped below $50 billion.