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The Solana Foundation has denied allegations from the Securities and Exchange Commission (SEC) that SOL is an unregistered security. The SEC filed lawsuits against crypto exchanges Binance.US and Coinbase earlier this week, which charged the exchanges with trading crypto asset securities, including SOL.
In a recent statement, the Solana Foundation has pushed back against the SEC’s classification of SOL, stating that it is the native token to the Solana blockchain, a decentralized software project, and not a security.
SOL is the native token to the Solana blockchain, a robust, open-source, community-based software project that relies on decentralized user and developer engagement to expand and evolve.
During a panel titled “WTF is going on crypto policy” at the Solana NYC Hacker House event, Amira Valliani, the foundation’s head of policy, disputed the SEC’s allegations. She emphatically stated, “SOL is not a security.”
According to the Foundation, they welcome policymakers’ continued engagement as constructive partners on regulation to achieve legal clarity for the thousands of entrepreneurs across the digital assets space.
Furthermore, the Solana community did not seem overly concerned with the chain’s regulatory nuisances. A developer said, “I don’t think any of the developers give a shit. SOL being a security doesn’t really affect anyone building on top of Solana.” Following the SEC’s legal actions, SOL’s price experienced a brief dip, but has since begun to recover.
The Solana Foundation’s denial comes three days after SOL was named as a security in two SEC lawsuits filed against major cryptocurrency exchanges like Binance and Coinbase. The SEC has been scrutinizing these platforms for their alleged sale of unregistered securities which includes Cardano (ADA), Polygon (MATIC), Sandbox (SAND), and other tokens, leading to a tightening of regulatory compliance in the crypto market.