Solana Foundation: SOL is Not a Security
The Solana Foundation has responded to the U.S. Securities and Exchange Commission (SEC) by asserting that the SOL token is not a security.
Solana Foundation: SOL is Not a Security
Update as of June 11, 2023:
In a statement posted on Twitter on June 11th, the Solana Foundation reiterated its stance that SOL is not a security, contrary to the SEC's position. However, the Solana team has expressed its willingness to engage in discussions with lawmakers to clarify the classification issues.
The Solana Foundation disagrees with the characterization of SOL as a security. We welcome the continued engagement of policymakers as constructive partners on regulation to achieve legal clarity on these issues for the thousands of entrepreneurs across the U.S. building in the…
— Solana Foundation (@SolanaFndn) June 10, 2023
Despite this, SOL's price has been heavily impacted by the SEC's classification, experiencing a drop of over 25% on June 10th.
4-hour chart of the SOL/USDT pair on Binance at 03:15 PM on June 11, 2023
Original Article:
In an interview with Coindesk, the Solana Foundation, which develops the Solana ecosystem, confirmed that the SOL token does not fall under the category of a security, as indirectly alleged by the SEC through its lawsuits against Binance and Coinbase.
The Solana Foundation stated:
“We are confident that SOL is not a security. SOL is simply the native token of the Solana blockchain, which is open-source and built on a decentralized community of developers and users.”
At the Hacker House event on June 8th in New York, a Solana developer mentioned that the developer community seemed largely indifferent to the SEC’s classification of SOL as a security, and this information had little to no impact on their continued development of Solana.
As Coin68 reported, SOL is one of several prominent tokens listed by the SEC as securities, alongside tokens from other major projects such as Cardano (ADA), Polygon (MATIC), Sandbox (SAND), Filecoin (FIL), Axie Infinity (AXS), Chiliz (CHZ), Flow (FLOW), Internet Computer (ICP), Near (NEAR), Voyager (VGX), Dash (DASH), and Nexo (NEXO).
Under recent legal pressure, the U.S.-based trading platform Robinhood is considering delisting SOL, along with ADA and MATIC. Meanwhile, Binance.US has delisted hundreds of BTC and BUSD trading pairs and suspended its OTC services. On the other hand, Coinbase has decided to maintain its list of tokens on the platform and is promoting the "Stand with Crypto" NFT to show its commitment to the market.
