The post SEC’s Solana Stance Remains Aggressive: What Next for SOL Price? appeared first on Coinpedia Fintech News
The SEC’s recent decision to withdraw its request to classify Solana (SOL) as a security in its lawsuit against Binance has sparked confusion. Despite this move, industry insiders, including Jake Chervinsky from Variant Fund, argue there’s no reason to believe the SEC has shifted its position on Solana.
With SEC updates and possible ETF on the horizon, will SOL regain its bullish rhythm?
Dive in!
What Does the SEC’s Withdrawal Mean for Solana?
Jake Chervinsky, Chief Legal Officer at Variant Fund, pointed out on X that there is no clear sign the SEC now views Solana as a non-security. He explained that the SEC’s recent court filing, which no longer seeks a verdict on the security status of certain tokens, has led some to think the regulator is easing its position. However, Chervinsky and other crypto experts argue this might be a misunderstanding.
Are We Reading Too Much Into the SEC’s Filing?
Miles Jennings from a16z Crypto and Justin Slaughter from Paradigm agree that many are overinterpreting the SEC’s filing. Slaughter noted that the filing doesn’t mean the SEC has decided Solana and other tokens are not securities. Jennings pointed out that proving these tokens are securities under the Howey test is challenging for the SEC, particularly in the Binance case.
Meanwhile, Judge Katherine Polk Failla in the Coinbase lawsuit seems to be more aligned with the SEC’s position.
SOL’s Performance
Post the news, Solana’s price dropped by 5% to about $182 on a day when the entire crypto market fell by nearly 3%. However, SOL has gained 5% over the past week and 25% over the past month. Despite a surge that briefly pushed Solana to 4th rank by market cap last week, its rank has slipped back to 5th. However, overall it’s up an impressive 670% over the last year.
What’s Next for Crypto?
The SEC’s lawsuit against Binance initially labeled several tokens as securities, including Solana, BNB, Cardano (ADA), Polygon (MATIC), The Sandbox (SAND), Decentraland (MANA), and Axie Infinity (AXS). These tokens, along with others the SEC has identified as securities, represent a significant portion of the cryptocurrency market, affecting assets worth over $100 billion.
The SEC continues to label these tokens as securities in other lawsuits, including one against Coinbase. This ongoing inconsistency keeps the crypto community uncertain. For now, Solana, BNB (BNB-USD), and others remain under close scrutiny.
Also Check Out: Binance Adds New Trading Options: Top Tokens to Watch
The SEC’s actions have sent shockwaves through the crypto market. Are they protecting investors, or stifling innovation? Weigh in.
