In response to recent charges from the US Securities and Exchange Commission (SEC), Solana Foundation categorically denies that its SOL token is a security.
The Solana Foundation has taken action to counteract the SEC’s classification of the SOL token, the native currency of the Solana network, as security.
In light of the SEC’s high-profile cases against Binance and Coinbase, the two largest cryptocurrency exchanges compelled to write. In this uncertain regulatory climate, major digital currencies like Cardano (ADA) and Solana (SOL) have been accused of unregistered securities.
Earlier this week, Input Output Global (IOG), the primary creator of the Cardano blockchain, made a similar announcement. U.Today reports that they believe the native ADA token does not meet the SEC’s definition of security under U.S. law.
Potentially reverberating across the digital asset space, this legal dispute has already sparked heated discussions regarding the classification and governmental monitoring of digital currencies.
The Solana Foundation has invited further discussion with regulatory regulators in response to the SEC’s depiction. This effort aims to provide a clear regulatory framework for the rapidly growing digital assets industry. They stressed the significance of their building community, reiterating their dedication to the future of decentralized blockchain technology via the efforts of developers.
Well-known trading site Robinhood has declared that it would no longer offer SOL and other tokens as the ongoing legal battle continues to send shock waves across the cryptocurrency industry. This choice is a direct response to the claims made by the SEC.
There are worries regarding these digital assets’ future availability and liquidity due to the ambiguity caused by the SEC’s creative categorization and the anticipated ripple consequences of the litigation entanglement. All of these show how complicated the regulatory environment is becoming for the crypto sector.
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