Solana Foundation asserts SOL is ‘Not a Security’ amidst SEC lawsuits.
The Solana Foundation stated that the native token SOL of the Solana network is not considered a security, despite the Securities and Exchange Commission (SEC) stating otherwise.
In a statement on Thursday regarding the regulatory status of its token, the Solana Foundation emphasized that it still considers Solana as decentralized enough for its native token to not be considered a security for regulatory purposes.
The statement reads, “The Solana Foundation strongly believes that SOL is not a security,” and adds:
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“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.”
It’s worth noting that the same blockchain article also quoted an anonymous developer working at Solana’s Hacker House in New York City as saying:
“I don’t think any of the developers give a shit.”
The developer also appeared to acknowledge that SOL could be a security, but emphasized that it does not necessarily matter.
He said, “SOL being a security doesn’t really affect anyone building on top of Solana.”
SOL token of Solana was among the 13 tokens that the SEC mentioned in its lawsuit against Coinbase, which 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.
The price of SOL fell significantly as news of the lawsuit broke on Tuesday, but has since stabilized in the range of $18 to $19.