Decentralized stock trading on platforms like dYdX faces significant securities law compliance risks. The U.S. SEC may classify governance tokens, such as DYDX, as securities under the Howey Test, requiring registration or exemptions for offerings and resales. Non-compliance could lead to enforcement actions, as seen in SEC cases against platforms like Binance. Airdrops and token lockup changes, like dYdX’s 2023 tokenomics shift, risk violating securities laws if not properly structured. Operating outside the U.S. does not fully shield dYdX, as global regulatory scrutiny intensifies. Decentralized exchanges must navigate complex rules to avoid penalties, ensure investor protection, and maintain market integrity, or face legal and financial consequences.