The Solana Foundation addressed the US Securities and Exchange Commission’s move to label it a ‘security.’
Solana (SOL) is one of the 68 cryptocurrencies listed in the SEC’s ‘crypto security’ list. Many of those on the roster have only been revealed alongside the lawsuit filed against Binance and Coinbase last week.
In a tweet posted on June 11, Solana Foundation voiced disagreement to the characterization of SOL as a security.
This is under the grounds that Solana projects are driven by a community deemed as the ‘strongest’ in the industry.
This means the foundation does not have a central authority that controls the network’s movements and decisions which distinguishes itself from traditional securities.
The Solana Foundation said they welcome the continued engagement of policy makers as ‘constructive partners’ in order to achieve ‘legal clarity’ on digital asset-related issues in the United States.
Following its response, SOL experienced a brief moment of relief and spiked 6.16% in the daily chart, AMBCrypto updates.
However, the double-whammy of being listed in both the Binance and Coinbase lawsuits as a security is stronger than the community’s retaliation.
SOL is currently exchanging hands at $15.17 with a 3% drop in the 24-hour charts. The overall crypto market is close to falling from its $1 trillion market cap after a 0.26% chip from the regulatory crackdown during the session.
All of the SOL’s longer-term timelines posted on Messari.io play on the red. The coin price declined 24.21% in the past week which sent its total monthly loss to 27.27%. It is off 94% from the all-time high level at $259.29 recorded in November 2021.
Solana (SOL) is among the 10 cryptocurrencies listed in the ‘crypto securities’ list in the Binance lawsuit, a CoinTelegraph article shows. It also made the list of the 13 cryptocurrencies dubbed as securities filed on the Coinbase lawsuit.
In an article, prolific investor and crypto advocate Mark Cuban argued it is nearly impossible to determine which is or is not a security in the crypto universe despite the presence of securities lawyers.