Solana Foundation Confirms SOL Token Is “Not A Security”!

June 9, 2023 - Around 3 mins mins to read

Key Points:

The Solana Foundation disputes SEC’s classification of SOL token as unregistered security.
At Solana’s Thursday hacker house event in NYC, the Solana community wasn’t overly concerned with the chain’s regulatory nuisances.
The SEC also identified tokens issued by foundations and companies or tied to protocols 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) as securities.

Solana Foundation is currently embroiled in a dispute with the U.S. Security and Exchange Commission (SEC) over the classification of its SOL token.

The SEC has labeled the token as an unregistered security, a designation that the Solana Foundation vehemently disagrees with. In fact, the Solana Foundation has released a statement expressing its strong belief that SOL is not a security but rather the native token of the Solana blockchain. The Solana blockchain is an open-source, decentralized software project that relies on community-based user and developer engagement to enhance and evolve the platform.

Interestingly, the SEC recently filed lawsuits against two prominent crypto exchanges, Binance.US and Coinbase, charging them with trading Crypto Asset Securities, including SOL. The Solana Foundation is continuing to challenge this classification and has made it clear that it is not willing to accept the SEC’s position without a fight.

Despite the regulatory challenges, the Solana community appears to be largely unfazed. At a recent hacker house event in New York City, developers expressed little concern about the regulatory hurdles facing the Solana blockchain. “I don’t think any of the developers give a shit,” remarked one developer. “SOL being a security doesn’t really affect anyone building on top of Solana.”

SEC’s lawsuits against Binance.US and Coinbase have also identified tokens from a number of other companies and foundations as securities. These include 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). As the regulatory landscape continues to evolve, it remains to be seen how these developments will impact the broader crypto ecosystem.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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