How Does the Lack of a Central Intermediary in a DEX Complicate the Enforcement of Anti-Front-Running Rules?

Decentralized Exchanges (DEXs) operate via smart contracts without a central authority or fiduciary intermediary. This structure means there is no single entity to hold legally accountable for market manipulation or to enforce traditional regulatory rules.

Since DEX front-running is algorithmic exploitation of a transparent protocol, it falls into a legal gray area, making traditional enforcement challenging. The responsibility for mitigation shifts from a central firm to the protocol developers and individual users.