• The Solana Foundation has stated that its native token SOL is ‘not a security’ despite the SEC claiming otherwise.
• An unnamed developer working for Solana admitted that SOL could be a security, but noted that it doesn’t affect anyone building on top of Solana.
• The price of SOL fell heavily after the lawsuit was filed, but has since stabilized around $18-$19.
The Solana Foundation Insists SOL Is ‘Not a Security’
The Solana Foundation has said that its native token SOL is “not a security” despite the Securities and Exchange Commission (SEC) claiming otherwise. The Foundation strongly believes that SOL should not be considered a security for regulatory purposes due to being part of an open-source, community-based software project with decentralized user and developer engagement.
SEC Lawsuit Claims 13 Tokens Are Investment Contracts
The SEC recently filed a lawsuit against Coinbase which claimed that 13 tokens including SOL are being “offered and sold as investment contracts, and thus as securities”. The other tokens named in the lawsuit as securities were ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH and NEXO.
Developer Believes SEC Status Doesn’t Affect Those Building On Top Of Solana
An unnamed developer working at Solana’s Hacker House in New York City said: “I don’t think any of the developers give a shit.” He also pointed out that even if SOL was classified as a security by the SEC it would not affect anyone building on top of Solana.
Price Stabilizes After Initial Drop Following Lawsuit Filing
The price of SOL fell heavily when news of the lawsuit broke on Tuesday but has since stabilized in the $18 to $19 range.
In conclusion it appears clear from both the statement from the Solana Foundation and comments from an unnamed developer at their Hacker House in New York City that they see no reason why their native token should be classified as a security by regulators such as the SEC. Despite this initial dip in price following news of the lawsuit being filed against Coinbase it appears that traders have taken this into consideration and adjusted prices accordingly with prices now appearing to have stabilized around $18-$19