The Securities and Exchange Commission (SEC) has issued a subpoena to SushiSwap, a popular decentralized finance (DeFi) exchange, and its CEO Jared Grey as part of its ongoing regulatory crackdown on the crypto industry. The SEC is investigating whether SushiSwap and Grey violated securities laws and misled investors about the platform’s operations and profitability.

SushiSwap is a decentralized exchange that enables users to trade cryptocurrencies without the need for a central authority. The platform has gained a significant following in the DeFi community, with its native token, SUSHI, having a market cap of over $2 billion.

The SEC’s move comes as part of a broader crackdown on the DeFi industry, which has faced increased scrutiny from regulators. Earlier this year, the agency charged two Florida men and their Cayman Islands company for unregistered sales of over $30 million of securities using smart contracts and DeFi technology.

The regulatory environment for DeFi platforms like SushiSwap is still uncertain, and compliance with securities laws is essential for their continued operation. The SEC’s investigation into SushiSwap and Grey highlights the need for DeFi platforms to navigate these challenges carefully.

Grey has expressed frustration with the SEC’s actions, saying that they have left him no longer “inspired” to work on SushiSwap. Nevertheless, the platform’s future remains uncertain as it navigates the regulatory landscape.