The SOL digital coin has been slapped with the ‘security’ label by the United States Securities and Exchange Commission (SEC), and The Solana Foundation took to Twitter to argue that it disagrees with the classification.

In the aftermath of the recent lawsuits by the SEC against Binance and Coinbase for allegedly breaking the law in their local and international crypto exchange operations, over 65 cryptocurrencies became classified as securities in the eyes of the SEC, including Solana’s SOL.

Publicly launched in March of 2020, SOL holders were staking the token to validate transactions via its consensus mechanism, earn rewards, decrease transaction fees and to participate in project governance initiatives.

After SOL and the 60+ other cryptocurrencies being labeled as securities by the SEC, The Solana Foundation had this to say as a reaction:

“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 digital assets space.

The Solana builder community is the strongest in the industry, and continues to build exceptional projects and products. The Solana Foundation remains committed to those building for the long-haul to continue to create the best blockchain for a decentralized future.”

Sources:

https://ambcrypto.com/solana-prices-take-a-u-turn-as-foundation-argues-sols-security-label/

https://fortune.com/crypto/2023/06/08/solana-foundation-denies-that-sol-is-a-security/

https://cointelegraph.com/news/sol-is-not-a-security-says-the-solana-foundation

https://twitter.com/SolanaFndn/status/1667578529612017666

https://coinmarketcap.com/currencies/solana/