- SOL token being a security "does not really affect" anyone building on top of Solana
- SEC identified 67 tokens issued by firms or foundations as securities
The Solana Foundation disagrees with the US Security and Exchange Commission’s view that its native token SOL is an unregistered security. The financial watchdog filed lawsuits against Coinbase and Binance earlier this week, accusing the exchanges of offering crypto asset securities, including SOL.
Solana community “isn’t concerned”
According to a statement by the Solana Foundation to CoinDesk, they vehemently deny SOL’s being a security. They add:
SOL is the native token to the Solana blockchain, a robust, open-source, community-based software project that relies on decentralized user and developer engagement to expand and evolve.
The community didn’t seem too worried about the regulatory hurdles SEC is trying to put up. At Solana’s hacker house event in New York City on June 8, a developer told CoinDesk that SOL’s being a security didn’t “really affect anyone building on top of Solana.”
SEC listed dozens of tokens as securities
In its charges against Coinbase and Binance, the SEC identified 67 tokens issued by firms or foundations or linked to protocols as securities, including Sandbox (SAND), Filecoin (FIL), Cardano (ADA), Polygon (MATIC), Axie Infinity (AXS), Internet Computer (ICP), Near (NEAR), Chiliz (CHZ), Flow (FLOW), Voyager (VGX), Nexo (NEXO), and Dash (DASH).
About Solana
Solana is a high-performance blockchain platform designed to provide fast and scalable decentralized applications (dApps) and cryptocurrencies.
One of its key features is its use of a unique consensus mechanism called Proof of History (PoH). PoH timestamps the order of events on the blockchain without requiring the nodes to reach consensus on time. This allows for a more efficient and parallel processing of transactions.
Solana also integrated ChatGPT and utilizes a decentralized architecture called a “Tower BFT” consensus mechanism, which allows for high transaction throughput, reaching thousands of transactions per second.
The blockchain incorporates a mempool-less transaction processing system, parallel smart contracts execution, and a system of verifiable delay functions (VDFs).
