The CFTC & Chicago Mercantile Exchange are Responsible for DYDX's Behavior The Last 18 Months

Don't you find it a bit odd that this pressure was single handedly put onto DYDX's legal department but so little or any of the rest of DeFi? (GMX is anon so)

Don't you find it odd that six other exchanges were forced to kick americans.

Well I've read most of Frank and Dodd and the Commodity Exchanges act, and I can tell you that the way the law is written has arguably done more harm to crypto than the SEC. The SEC is a distraction from the CFTC.

The anti-money laundering and national security concern trolling that american politician are using to shut down crypto services to US citizens is almost exclusively driven by the monopoly interest behind the stock market and the Chicago Mercantile Interest. They have so much power they forced sovereign country and non US citizen to enforce KYC overseas to stay in the good graces of american diplomacy, then extradited Hayes and Reed, and gave Bitmex to JP Morgan ex-execs.

I Wish people could just see that this was american gangster capitalism and national security trolling that was driving this entire regulatory crackdown on crypto. It is not about consumer safety, it is about corporate power, and american corporate power needs absolute surveillance.

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Dydx is the only major high volume on chain DeFi protocol for leveraged protocols.

Recently they tried to do facial recognition from a company for sybil resistance so they could give people 25 dollar bonus's for sign ups without it being gamed, or so they claim. This caused a big uproar.

Dydx has been blocking user addresses from interacting on the front end based on US IP address for a long time now, and they recently only use 2 degrees (or two hops or two transfers) from Tornado cash to ban IP addresses and eth addresses that are downstream from someone who interacted with Tornado Cash.

Their matching engine isn't onchain, it's a centralized service owned by a company, so they come under a lot of legal jurisdiction. Starkware is the layer two rollup it's hosted on, and it is seriously niche, and likely to come under regulatory scrutiny too. Most layer two are very poorly designed from a legal censorship resistance standpoint because they require multisig ownership (which I think is psychotic and just should not exist flat out)