SOL is ‘Not a Security’, Insists Solana Foundation Amid SEC Lawsuits

Regulation SEC SOL Solana

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Fredrik Vold

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Fredrik Vold

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June 26, 2023 06:55 EDT

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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.

“The Solana Foundation strongly believes that SOL is not a security,” it said in a statement, while adding:

“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.”

Notably, the same CoinDesk article also quoted an unnamed 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 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 the 13 tokens that the SEC in its lawsuit against Coinbase said 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 heavily as news of the lawsuit broke on Tuesday, but has since stabilized in the $18 to $19 range.