Solana (SOL) is one of the crypto coins labeled as a security, i.e security, in the indictments of the American Securities and Exchange Commission (SEC) v Binance and Coinbase. The discussion about crypto and securities has been going on for some time in the crypto country; this is exactly what the dragging lawsuit between Ripple and the SEC is all about. However, now the SEC has taken it to the next level and tensions and uncertainties are rising in the overall industry.
You could read recently in the Cardano news that the Cardano Foundation, the organization that oversees the development of Cardano (ADA), had responded to the SEC’s allegation by stating that they strongly disagree. . Now the baton has been passed to the Solana Foundation, which has come up with a similar response.
Solana Foundation responds
In a statement the non-profit organization behind the Solana blockchain indicated that the native token does not qualify as a security according to them:
“The Solana Foundation strongly believes that SOL is not security. SOL is the native token for the Solana blockchain, a robust, open-source, community-based software project that relies on decentralized user and developer engagement to expand and evolve.”
During Solana’s five-day ‘Hacker House’ event, it seemed Solana developers weren’t too concerned at the moment. For example, one developer said that SOL as an effect doesn’t really affect someone building on the network.
Ripple lawsuit now carries even more value
Nevertheless, it would have major consequences for both Binance and Coinbase in the United States. A security may only be issued in the US if a party has the correct permits. Making unregistered securities negotiable is strictly prohibited and the underlying rationale is consistent with the SEC’s overall purpose of protecting investors.
All eyes will now be on the judge’s ruling in the case between Ripple and the US financial watchdog. Although this ruling will not be binding on the allegations against Binance and Coinbase, the importance of the final verdict has increased for the entire industry.