Sonic Labs Co-founder: Developers Face a Dilemma Between Decentralization and Regulatory Compliance

ChainCatcher news, Andre Cronje, co-founder of Sonic Labs (formerly Fantom), shared on the X platform that despite adhering to all regulations, he has been in tough discussions with regulators, including the U.S. Securities and Exchange Commission (SEC), for nearly two years.

He also pointed out that user preferences have changed, and now many people prefer teams and products over immutable code. Cronje concluded that builders face a tough choice: either commit to decentralization and immutability, risking blame, regulatory hurdles, and lack of returns; or accept corporatization, licensing, and controlled improvements to ensure continuous progress.