Sushi DAO’s Bold Move: Proposing a Legal Defense Fund amid SEC Scrutiny

The SEC Speaks: Sushi DAO in the Hot Seat

On March 21, Sushi DAO made waves by proposing the establishment of a legal defense fund following a recent subpoena aimed at its head honcho, Jared Grey, and the DAO itself by none other than the United States Securities and Exchange Commission (SEC). This isn’t just some fishy business; it’s about navigating the tumultuous waters of crypto regulations.

Details? They’re on the Back Burner

Surprisingly, the proposal offered scant details regarding the nature of the SEC subpoena. The sushi-loving folk behind the DAO made it clear that they’re cooperating with the SEC while also holding their cards close to the chest. As one community member amusingly pondered, “How does ‘sushi’ even get subpoenaed? The human I get, but sushi is a DAO.” Perhaps the real question is whether the SEC is more interested in greasing the wheels with legal coercion rather than diving deeper into the decentralized nature of the organization.

Goodbye $30 Million: A Necessary Sacrifice?

In case you missed it, last year Sushi DAO lost a staggering $30 million on liquidity provider incentives. This prompted the DAO to propose a redesign of its SUSHI tokenomics. Now, it seems they’re thinking ahead, ready to face potential future challenges with this $3 million legal defense fund – and a possible $1 million extra if things really heat up!

Funding the Fight: Where’s the Money Coming From?

The funding for this legal escapade will come from 15% of SUSHI sales. It’s a move not entirely unprecedented in the crypto world. After all, Maker DAO rolled out a similar initiative back in December. Contextually, Sushi first dipped its toes into this legal fund territory in March 2022, with backers contributing anywhere from $85,000 to $100,000. Each dollar committed to these funds is not just a safety net but a testament to the community’s confidence in their decentralized structure.

The SEC’s Eye on DAOs: A New Target?

Sushi could be facing quite the legal storm, as it reportedly stands as the first DAO snagged in the SEC’s scrutinizing net under Gary Gensler’s reign. The commission has ramped up its focus on the crypto industry lately, especially targeting staking and custody operations. Remember when Kraken had to bow out of offering staking services for U.S. clients, cough up $30 million in penalties, and, well, try to keep its head above water? Yeah, the tide has turned against some in this sea of regulations.