The Solana Fund first appeared on Twitter in response to the U.S. Securities and Exchange Commission’s classification of SOL, the platform’s native token, as a security.
“The Solana Foundation disagrees with treating SOL as a security,” the Solana Foundation said on June 10, emphasizing its welcome to policymakers’ involvement to gain clarity on legal aspects in the field of digital assets.
Solana’s native and utility tokens were publicly announced in March 2020. SOL holders contribute tokens to verify transactions through the network’s consensus mechanism. Tokens can also be used to receive rewards, pay transaction fees, and enable users to participate in network management.
The United States Securities and Exchange Commission (SEC) has marked SOL tokens as securities in two separate lawsuits, filed on June 5 and June 6, against cryptocurrency exchanges Binance. and Coinbase. This classification is based on a number of factors, including expectations of profits from other people’s activities, as well as how the token is being used and marketed.
“This classification is significant because it requires Solana and related activities to comply with regulations and other requirements. […] We are actively interacting with legal experts and have contact the SEC to understand and address their concerns,” the Solana Foundation stated in a message to its community.