Following the US SEC’s declaration of SOL, the native token of Solana blockchain, as a security, the Solana Foundation has made it clear that their token is not a security.
The SEC included SOL in a suit against Coinbase, stating that it should be treated as a security. Additionally, Cardano and Matic were also added to the list of securities by the SEC.
The Solana Foundation disagrees with the characterization of SOL as a security. We welcome the continued engagement of policymakers as constructive partners on regulation to achieve legal clarity on these issues for the thousands of entrepreneurs across the U.S. building in the…
— Solana Foundation (@SolanaFndn) June 10, 2023
Solana is a blockchain platform that prioritizes high performance and scalability for decentralized applications and cryptocurrencies.
Founded in 2017 by Anatoly Yakovenko, Solana uses a unique protocol called Proof of History (PoH) to reach high throughput and low transaction costs. Solana also uses the consensus mechanism Proof of Stake (PoS) to secure its network and provide fast, secure solutions for developers and users in the blockchain ecosystem.
SEC, Coinbase, and Binance
Last week, the SEC filed a lawsuit against both Binance and Coinbase at the same time. According to the filing, Binance was accused of operating crypto services that were not approved by US regulators. The details of the case show that Binance sold securities, including its native token, BNB, which were not registered with the SEC.
Coinbase was accused of operating illegally in a lawsuit, where the crypto exchange was found to be acting as a broker, an exchange, and a clearing agency. According to the SEC, these functions are not expected to be carried out by a single entity.
According to Solana, thousands of American entrepreneurs in the digital asset space are desperate for clear regulations. That’s why we’re calling on policymakers to step up and provide guidance and support.
Solana is fully committed to supporting the builders and creators who are working tirelessly towards a decentralized future. The foundation will continue to stand by those in it for the long haul