In response to the classification of Solana blockchain native cryptocurrency SOL as securities in the lawsuits levied against Coinbase and leading digital asset service provider Binance by the Securities and Exchange Commission (SEC), the Solana Foundation has clarified that this is not the case.
According to a June 10 statement on Twitter, “The Solana Foundation disagrees with the characterization of SOL as a security.”
“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,” the Solana Foundation added in a discussion with Coindesk.
At the same time, the protocol mentioned that it is open to a legal opinion from policymakers to clarify the situation.
Binance SEC’s Crosshairs
On Monday, June 5th, the SEC sued Binance for several charges including offering unregistered securities.
BNB, Binance USD (BUSD), SOL, Cardano (ADA), Polygon (MATIC), Cosmos (ATOM), The Sandbox (SAND), Decentraland (MANA), Axie Infinity (AXS) and COTI (COTI) were all listed in the Binance lawsuit as securities. This was in addition to flouting Know-Your-Customers (KYC) rules, mishandling customers’ funds and misleading investors.
SEC Sues Coinbase For Listing SOL, NEAR, And Others Securities
The day after, Coinbase was also sued for operating an unregistered brokerage with Chiliz (CHZ), Flow (FLOW), Internet Computer (ICP), Near (NEAR), Voyager Token (VGX) and Nexo (NEXO) added to the aforementioned list. These classifications were made on the basis of how the tokens are being used and marketed and profit expectation derived from investors.
Robinhood Actively Considers SOL Listing
The news has brought some kind of loss of confidence amongst investors and some crypto-related entities.
American financial service provider Robinhood is caught between decisions on relating or delisting SOL. Based on a statement from Dan Gallagher, the Chief Legal Compliance Office at Robinhood, the brokerage firm is “actively reviewing the SEC analysis to determine what, if any, actions to take in that regard.”
Robinhood possesses a broker-dealer license for the trading of securities but the firm is not sure if the same license provides the appropriate authorization to trade most of the tokens listed as securities.