• The Solana Foundation has insisted that its native token SOL is “not a security” despite the SEC claiming otherwise.
• An unnamed developer from Solana’s Hacker House in New York City said that even if it is deemed a security, it doesn’t necessarily affect development on the Solana blockchain.
• The price of SOL fell heavily as news of the SEC lawsuit broke but has since stabilized in the $18 to $19 range.
Not a Security, Insists Solana Foundation
The Solana network’s native token SOL is “not a security,“ despite the Securities and Exchange Commission (SEC) claiming otherwise, the Solana Foundation has said. Commenting on the regulatory status of its token to CoinDesk on Thursday, the Solana Foundation made it clear that it still sees Solana as sufficiently decentralized for its native token to not be considered a security for regulatory purposes.
An unnamed developer working at Solana’s Hacker House in New York City commented that “I don’t think any of the developers give a shit.“ He also appeared to admit that SOL could be a security, but pointed out that it doesn’t necessarily matter. “SOL being a security doesn’t really affect anyone building on top of Solana,“ he said.
Solana’s SOL token was among 13 tokens that the SEC named in its lawsuit against Coinbase as being „offered and sold as investment contracts, and thus as securities.“ The other tokens named were ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX DASH and NEXO.
Price Drop After Lawsuit
The price of SOL fell heavily as news of the lawsuit broke on Tuesday but has since stabilized in the $18 to $19 range.
Despite an initial drop in price after news of SEC’s lawsuit against Coinbase broke out which included SOL token among 13 tokens claimed as securities by SEC; however later due to developer opinions regarding how this claim will not affect anyone building on top of solano blockchain and Statement by solano foundation stating their belief for their native token not being considered as security have lead to stabilize price in between 18-19$