Solana Foundation disagrees with the characterization of SOL as a security

The Solana Foundation responded against the SEC’s claim over the nature of the Solana (Sol) coin.

Solana is a popular Proof-of-stake (PoS) crypto network. In this innovative sector, Solana is known for its highly scalable blockchain network, thanks to its unique protocol “Proof-of-history (PoH) which allows it to handle 50 thousand transactions per second very easily. Recently the United States Securities Exchange Commission (SEC) labelled Sol coin as a security token in suits against crypto firms.

On 10 June 2023, The Solana Foundation, a non-profit organisation behind the Solana crypto project, responded against the SEC’s claim over the alleged security nature of Sol coin.

The foundation stated that it fully disagrees with the SEC’s claim and also welcomed the regulatory body to engage in the crypto sector to bring a clear path for the crypto industry so that crypto entrepreneurs can easily establish this innovative sector with full clarity of laws.

“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 foundation stated.

Further, the foundation stated that its community is very strong in the crypto sector & it will remain open for the development of exceptional projects and products in the Solana blockchain ecosystem.

Earlier this was a similar kind of statement passed by Input Output Hong Kong Global (IOG), a blockchain firm behind the popular Proof-of-stake (PoS) scalable blockchain network of Cardano. 

IOG stated that Cardano’s native token ADA is not a security and also the SEC’s claims against the ADA coin were based on the wrong facts. 

Sentiments against Sol coin 

Earlier this, the Solana blockchain network was already facing huge criticism for its centralization, as once couple of years ago Solana co-founder said that they’re focussed on increasing network ability, over the decentralization of the network.

Following the SEC’s suit against two top crypto firms, SOL coin is facing a huge problem in the crypto market. The majority of crypto Investors are considering Sol coin as a risky investment asset. 

Read also: SEC boss says crypto intermediaries have to comply with securities laws