Crypto execs argue the SEC still considers Solana a security despite the regulator's recent filing in its Binance lawsuit, signaling continued scrutiny for SOL and other tokens.
Crypto industry experts suggest that the SEC still regards Solana (SOL) as a security despite the regulator retracting its request for a court ruling on the matter in its Binance lawsuit. The recent move is seen as a litigation tactic rather than a shift in the SEC's stance on SOL and other tokens.
Key Points:
SEC's Latest Filing:
The SEC retracted its request for a court decision on whether certain tokens, including Solana, are securities as part of its lawsuit against Binance.
Jake Chervinsky of Variant Fund emphasized that this does not indicate a change in the SEC's position on SOL being a security.
Legal Interpretations:
The SEC continues to classify the same tokens as securities in other lawsuits, notably against Coinbase.
Miles Jennings of a16z Crypto and Justin Slaughter of Paradigm concur that the recent filing is being misinterpreted by some observers.
Judicial Challenges:
Judge Amy Berman Jackson set a high bar for proving the Howey test in the Binance case, possibly prompting the SEC to redirect its efforts.
In contrast, Judge Katherine Polk Failla in the Coinbase lawsuit appears more supportive of the SEC's view on token securities.
Broader Implications:
The SEC has labeled several tokens as securities in the past, including Solana, BNB, Cardano, Polygon, Sandbox, Decentraland, and Axie Infinity.
Over 68 tokens, affecting more than $100 billion worth of cryptocurrencies, have been implicated by the SEC.
Despite recent legal maneuvers, the SEC's stance on Solana and similar tokens as securities remains unchanged. Crypto executives warn that the regulatory scrutiny on these digital assets continues, underscoring the uncertain regulatory environment for the crypto industry.
Source: Cointelegraph
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