Solana Foundation Dismisses Claims of SOL Being a Security

Earlier this week, on Monday, the Securities and Exchange Commission (SEC) revealed a high-profile lawsuit against Binance. In addition, the agency has targeted a number of altcoins, such as Solana and Polygon.

However, the SEC also alleged in the lawsuit that coins like Solana, Polygon, Cardano, and various others should be classified as securities. These cryptocurrencies are some of the largest in the crypto market, boasting market caps in the billions of dollars. Meanwhile, there are also emerging projects with a focus on gaming that fall under this categorization.

Among the cryptocurrencies under scrutiny are Binance’s BNB token and its stablecoin, BUSD, along with ten other tokens: Solana (SOL), Cardano (ADA), Polygon (MATIC), Filecoin (FIL), Cosmos Hub (ATOM), The Sandbox (SAND), Decentraland (MANA), Algorand (ALGO), Axie Infinity (AXS), and COTI (COTI).

The native token of the Solana blockchain, SOL, was alleged to be an unregistered security in this week’s SEC lawsuits against crypto exchanges Binance.US and Coinbase.

In the statement released on June 10, the Solana Foundation expressed its disagreement with the classification of SOL as a security. The foundation emphasized its openness to engaging with policymakers to establish clear legal guidelines within the realm of digital assets.

Solana’s native token, known as SOL, was introduced to the public in March 2020. SOL holders have the ability to stake the token, which allows them to validate transactions using the platform’s consensus mechanism. Additionally, the token serves multiple purposes, such as earning rewards, covering transaction fees, and granting users the opportunity to engage in governance activities.

Following the allegations made by the SEC, claiming that the SOL token is an unregistered security, there has been a persistent decline in its price. Over the past week, the SOL token experienced a significant 30% decrease. This downturn sparked a lively discussion within the Solana community.

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