- 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.
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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.
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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:
