- The Solana Foundation disagrees with the crypto regulatory trend sweeping across the US.
- The Foundation criticized particularly the characterization of SOL as a security.
- SOL is among the 13 tokens the SEC alleged Coinbase “offered and sold as investment contracts.
The Solana Foundation has disagreed with the regulatory trend sweeping across the crypto industry in the US. The Foundation criticized particularly the characterization of SOL, Solana’s native crypto, as a security by the Securities and Exchange Commission (SEC).
On Saturday, June 10, 2023, the Solana Foundation, via its Twitter account, communicated its position in the ongoing tussle. The Foundation also expressed willingness to partner with policymakers to achieve legal clarity in the crypto industry.
The Foundation tweeted:
“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 digital assets space.”
According to the Solana Foundation, its builder community is the strongest in the crypto industry. It assured its audience of its commitment to those that are building for the long haul. The Foundation also promised to continue creating the best blockchain for a decentralized future.
The Solana Foundation issued its statement after the SEC included SOL among the 13 tokens it alleged Coinbase “offered and sold as investment contracts, and thus as securities”. The SEC’s allegation was part of its lawsuit against Coinbase, and the other named tokens include ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO.
The SEC’s lawsuit triggered a FUD (Fear, Uncertainty, and Doubt) across the crypto market. Many digital tokens lost significant portions of their value. SOL fell from $21.83 to $13.19, reflecting a 39.5% loss in just a few days.
At the time of writing, SOL had recovered part of its loss and traded at $15.54, reflecting an 18% recovery in the last 24 hours.
The lawsuit filed by the SEC is in its early stages and could remain a subject of debate for a long time. One Twitter user thinks the crypto community needs to unite in the fight against the establishment. According to him, decentralization does not require physical jurisdiction. It requires a growing community.
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