• The US Securities and Exchange Commission (SEC) has issued a subpoena against SushiSwap and its CEO Jared Gary.
• Jared Gary is proposing the creation of a legal fund to cover the legal costs of core developers who ratified Sushi 2.0 in April 2022.
• The SEC has been taking action against the crypto-market with lawsuits and subpoenas for some time, most recently targeting stablecoin BUSD issuer Paxos.
SEC Subpoenas SushiSwap
The United States Securities and Exchanges Commission (SEC) has taken action against yet another crypto-entity by issuing a subpoena against decentralized exchange SushiSwap and its CEO Jared Gary.
Legal Fund Proposal
In response to the subpoena, Jared Gary proposed creating a legal fund to cover the legal costs of core developers who ratified Sushi 2.0 in April 2022. The proposal calls for $3 million USDT stablecoin to be dedicated from the Sushiswap Decentralized Autonomous Organization (DAO), with an additional $1 million set aside in case funds are needed. Funds will be sourced from Kanpai fees, grants, and TWAP market sells of Sushi.
SEC Targets Crypto Market
The SEC’s recent action against SushiSwap follows other attempts at cracking down on cryptocurrency markets over the past few years. Most recently, it labeled stablecoin BUSD issuer – Paxos – as a security.
SUSHI’s Market Cap
Realistic or not, there is speculation about what impact this news might have on SUSHI’s market capitalization in terms of Bitcoin (BTC).
It remains to be seen how this situation develops but one thing is certain – regulatory agencies like the SEC are increasing their scrutiny when it comes to cryptocurrencies and DeFi projects like Sushiswap will need to prepare accordingly if they want to stay compliant with applicable laws and regulations moving forward.