- U.S. Securities and Exchange Commission claims SOL a Security.
- Genesis General Counsel of Solana questions SEC’s description of SOL coin.
Ryón Nixon, a founding partner of leading blockchain law firm Horizons Law and Consulting, has tweeted that the SEC’s characterization of SOL as being “labeled as a security is inaccurate.”
Nixon, who served as Solana’s genesis general counsel (but who no longer currently represents Solana Labs/Foundation). He issued the tweet thread on June 28 claiming that “the SEC is wrong to characterize SOL as a security.” Also, he stressed that while he no longer represents Solana, his views on the matter are strictly personal.
I am @Solana’s genesis general counsel. SOL was mentioned in the SEC's actions against @Coinbase and @Binance. The SEC is wrong to characterize SOL as a security. DISCLAIMER: These are my personal thoughts & commentary. I do not currently represent Solana Labs/Foundation 🧵
— ryonnixon (@ryonnixon) June 28, 2023
Elaborating on the reasoning behind his logic. Nixon stated, “The Solana blockchain possesses some of the best tech in crypto, and accessing it requires the utility token SOL.”
SOL is a Security?
In a May 29 interview with TechCrunch, Roj Gokal, co-founder of Solana, expressed his company’s goal to achieve 10 to 100 times growth. This growth driven by forming partnerships with small businesses and focusing on infrastructure development.
According to Nixon, “Solana, the blockchain, does not work without SOL, the asset. SOL aligns all of the people in the ecosystem, serving as the base unit of account that powers on-chain transactions.”
He also said that the Solana Foundation acts like a “flywheel in motion. And it is one of the most effective flywheels in crypto.”
Importantly, while the Howey Test is important in some respects, re: SOL and other digital assets. Howey cannot be effectively, rationally or consistently applied to an asset as complex, ephemeral and multi-faceted as SOL.”
Further, Nixon says that because “there is no gatekeeper controlling who builds on Solana,” it fails to meet the three components set out by the SEC. “Howey is also outdated,” Nixon concluded, “Ultimately, this fight will make the community stronger and more resilient than ever. Solana will continue to change the world.”
Currently, the Solana price stands at $16.46 USD, accompanied by a 24-hour trading volume of $267 million USD. It currently holds the #10 rank on CoinMarketCap, up 2.36% over the last 24-hours.
