Solana Foundation Says SOL Is Not a Security in Response to SEC Charges

The Switzerland-based Solana (SOL) developer is objecting to the U.S. Securities and Exchange Commission’s (SEC) allegation that the 11th-largest crypto asset by market cap is a security.

The Solana Foundation says that it disputes the claims made by the SEC in a lawsuit filed against crypto exchange Binance last week.

“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 US building in the digital assets space.”

The Solana Foundation is not the only developer reacting to the SEC’s latest offensive on the crypto space.

Polygon Labs, the developer of the blockchain-scaling solution Polygon (MATIC), appears to be distancing itself from the US market after the SEC included the altcoin in its list of crypto asset securities.

“We are proud of the history of the Polygon network – developed outside the US, deployed outside the US, and focused to this day on the global community that supports the network. MATIC was a necessary part of the Polygon technology from day one, ensuring that the network would be secure – and remains so to this day. Given our focus on network security, we made sure MATIC was available to a wide group of persons, but only with actions that did not target the US at any time.

The non-US market is the largest in the world, and we are grateful for all the thoughtful work being done on all aspects of this technology around the globe, including by regulators and policymakers.

We are confident in the actions we took in the past, and how focused we are on building in the future.”

Besides Solana and Polygon, the SEC also listed ten other crypto assets that it views as securities.

“Since the Binance Platforms launched, Defendants have made available for trading on them crypto assets that are offered and sold as investment contracts, and thus as securities.

This includes, but is not limited to, [Binance Coin] BNB, BUSD, and the units of each of the crypto asset securities further described below – with trading symbols [Solana] SOL, [Cardano] ADA, [Polygon] MATIC, [Filecoin] FIL, [Cosmos] ATOM, [The Sandbox] SAND, [Decentraland] MANA, [Algorand] ALGO, [Axie Infinity] AXS, and [COTI] COTI (collectively, the ‘Crypto Asset Securities’).”