On a recent ask-me-anything call, Sushi Swap’s Head Chef, Jared Grey, expressed disappointment and displeasure with the rise of regulatory crackdowns on cryptocurrency exchanges, including the decentralized exchange he administers.
Grey brought up the strain that the regulatory crackdown has had on the cryptocurrency business, using US Senator Elizabeth Warren’s creation of an “anti-crypto army” as an illustration.
“Regulators in the United States seem to be more focused on stifling innovation rather than promoting it. As a result, I no longer feel inspired to build in the U.S. market,” said Grey.
Grey’s remarks follow the US Securities and Exchange Commission (SEC) serving Sushi DAO and Grey with a subpoena, suggesting that the protocol may face legal trouble from regulators vowed to exert more rigorous regulation over cryptocurrency enterprises.
Grey suggested allocating $4 million of the protocol’s treasury monies to a “Sushi DAO Legal Defense Fund” to finance this conflict. Community members opposed the idea, however, and others questioned if spending money on legal defense was a sensible use of the protocol’s resources.
Grey recognized his efforts to address the protocol’s financial problems on the call, despite the criticism. The protocol showed that Sushi Swap has just under 18 months of runway remaining in its treasury and lowered the project’s yearly runway requirement from $9 million to $5 million.
The community’s disapproval of the legal defense fund has persisted, with almost one-third of those who responded to a poll on the forum for the protocol’s governance proposal voting against the fund. The recent SEC probe has had a negative effect on the protocol’s native token as well; it has dropped 12% since Grey made the subpoena’s existence public.
Grey refused to elaborate on the subpoena throughout the conversation, saying that he had been advised by legal not to do so. The earlier pushback against the legal defense fund underscores the difficulties the protocol is encountering as it tackles with financial issues and regulatory scrutiny, even though Grey’s responses to the call’s participants appeared to placate them.
Also Read: SushiSwap New CEO accused of Scamming and Other Crimes
