OKX Built Hyperliquid-Style DEX But Delayed Launch Over Regulatory Fears
Crypto trade OKX constructed a decentralized perpetuals buying and selling platform just like Hyperliquid and ASTER, however shelved its mainnet launch as a consequence of regulatory issues, in keeping with founder and CEO Star Xu.
Key Takeaways:
- OKX constructed a Hyperliquid-style DEX however delayed its launch as a consequence of regulatory issues.
- Star Xu cited the CFTC’s 2023 crackdown on Deridex and others as a significant cause for holding again.
- As onchain perpetuals acquire momentum, shifting US laws might reshape the house.
In a post on X over the weekend, Xu revealed that OKX’s Web3 division had been quietly testing a perpetuals-focused DEX since 2023.
“OKX Web3 has been testing an identical product since 2023, however we selected to not launch mainnet as a consequence of regulatory issues,” Xu wrote.
OKX Cites CFTC’s Deridex Crackdown as Reason for Delaying DEX Launch
Xu cited the U.S. Commodity Futures Trading Commission’s 2023 enforcement motion towards Deridex as a key cause for the holdback.
The CFTC had charged Deridex with illegally providing digital asset derivatives and failing to register as a swap execution facility or a futures fee service provider.
The crackdown prolonged to 2 different protocols, Opyn and ZeroEx, for providing leveraged crypto transactions to retail customers with out correct registration.
“While we have a good time the expansion of onchain perps, we must always not overlook the CFTC enforcement towards Deridex in 2023,” Xu added.
“Regulatory enforcement has basically shifted — hopefully the trade can quickly acquire much-needed readability.”
Xu’s feedback come amid a surge in exercise within the decentralized perpetuals house.
Hyperliquid, which launched in 2024, has shortly grow to be considered one of DeFi’s high platforms, recording $319 billion in buying and selling quantity in July alone.
Meanwhile, ASTER, launched as Aster Chain and backed by CZ-linked YZi Labs, has seen greater than $22 billion in quantity over the previous 30 days, per DefiLlama.
While OKX selected to carry again its personal DEX launch, altering regulatory dynamics within the US may shift the panorama.
CFTC Adds Crypto Leaders to Digital Asset Markets Subcommittee
The CFTC just lately expanded its Digital Asset Markets Subcommittee to incorporate crypto trade leaders.
Among the newest appointees to DAMS are Katherine Minarik of Uniswap Labs, Avery Ching of Aptos Labs, James J. Hill of BNY, and Ben Sherwin of Chainlink Labs, key figures in blockchain infrastructure, authorized coverage, and institutional crypto technique.
JPMorgan’s Scott Lucas has been named co-chair of the subcommittee, becoming a member of Franklin Templeton’s Sandy Kaul. They change Caroline Butler within the position.
DAMS was established to information the CFTC on developments in blockchain, tokenization, and decentralized finance.
Meanwhile, a newly revised draft of the Responsible Financial Innovation Act of 2025 outlines a clearer regulatory framework for digital assets in the US, aiming to cut back battle between the SEC and CFTC.
The invoice proposes a Joint Advisory Committee on Digital Assets, with each companies required to publicly reply to its findings, a transfer supposed to spice up transparency and coordination. A public roundtable on the subject is scheduled for September 29.
The draft consists of specific protections for DeFi builders, validators, pockets builders, and infrastructure contributors, as long as the underlying protocol will not be centrally managed.
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