Solana Foundation Faces Backlash for ‘Weak’ SEC Response

Amidst the SEC’s attack on SOL, the Solana community demands a stronger response from the Solana Foundation.

Angry crowd of people, not happy with Solana Foundation.
Created by Gabor Kovacs from DailyCoin
  • Solana Foundation refutes SEC’s classification of SOL as a security.
  • The community criticizes the foundation’s response as weak and inadequate.
  • SEC targeted multiple tokens, including SOL, in its lawsuit against Binance. 

At a time when altcoins face an existential crisis in the US, the community demands decisive action. Decisiveness was not forthcoming from the Solana Foundation’s response to the SEC, according to some in its community. 


Solana Foundation’s response to the Securities and Exchange Commission (SEC) calling SOL a security made it a target of criticism. Multiple community members criticized the supposed canned and weak response by the Foundation. Some even suggested that it was the work of AI. 

Community Backlash to Solana Foundation’s SEC Response

On June 11, 2023, the Solana Foundation faced backlash from the community over its supposed weak response to the SEC’s allegations. 

The foundation stated that they “disagreed” with the regulator but that they welcome the “ongoing engagement” of policymakers. The Solana community, however, has expressed dissatisfaction with the foundation’s response. 

“Guys, hire a new intern or a new PR person to write better,” said one user in response. “Did ChatGPT write this?” another user asked. 

Other users tweeted the statement back at Solana Foundation, suggesting it was a copy-paste response.


Many community members have criticized the foundation’s stance as weak and insufficient, demanding a more robust response to the SEC’s allegations.

SEC’s Binance Lawsuit: Impact on Solana

On June 5, 2023, the SEC filed a lawsuit against Binance, the world’s largest crypto exchange. In the lawsuit, the SEC mentions several altcoins, including Solana, calling them unregistered securities. 

Since the lawsuit, several altcoins, including Solana (SOL), have experienced significant price drops. From June 5 to June 11, 2023, Solana’s value dropped from approximately $21.82 to $15.55, representing a decrease of about 28.7%. 

On the Flipside

  • There is no reason to think that the content is AI-generated. For one, the paragraph passes AI detectors, which vary by reliability. 
  • Solana is just one of the tokens the SEC targeted as an investment contract. Other altcoins mentioned in the Binance lawsuit include Cardano (ADA) and Polygon (MATIC). 

Why This Matters

If the SEC manages to convince the courts that Solana is a security, US exchanges will have to delist the token. This will have a severe impact on the token’s liquidity and price. 

Read more about SEC’s case against SOL:

SEC v. Binance Puts Screws on U.S. Exchanges to Delist ADA, SOL, MATIC

Read more about the SEC’s lawsuit is affecting other exchanges: Partial Shutdown in US: Should You Worry?

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

David Marsanic

David Marsanic is a journalist for DailyCoin who covers the intersection of crypto, traditional finance, and government. He focuses on institutionalized crypto entities like major cryptocurrency exchanges and Solana, breaking down complex topics into easy-to-understand writing. David's prior experience as a business journalist at various crypto and traditional news sites has enabled him to maintain a critical approach to news while adhering to high journalistic integrity standards.