Solana Price Prediction as SOL is Deemed a Security by the SEC – Will the Charges Send SOL Lower?
SOL, the cryptocurrency that powers the smart-contract-enabled, high-performance Solana layer-1 blockchain protocol, has just been deemed as a security by the US Securities and Exchange Commission (SEC).
In the past two days, the SEC has sued both Binance and Coinbase, two of the world’s largest cryptocurrency exchanges in terms of trading volumes, for operating as unlicensed securities exchanges within the US.
Part of the justification for that accusation resides in the fact that both firms have been allowing the US general public to invest in cryptocurrencies like Solana, which the two lawsuits allege are actually securities.
Other major blue-chip tokens like Cardano (ADA), Polygon (MATIC), BNB, BUSD and Cosmos (ATOM) were all also labeled as securities by the US regulatory agency.
The lawsuits have sent SOL’s price tumbling, with SOL/USD last changing hands near $20, down over 10% from weekend highs above $22.
For now, SOL is holding to the north of its 200-Day Moving Average at $19.43, which has offered strong support in the past two days.
But in wake of SEC action, price predictions have become more pessimistic.
The SEC’s assertion that Solana (SOL) is a security could have major ramifications for the cryptocurrency.
If the SEC wins it lawsuits against Binance and Coinbase (either in court or via a favorable settlement), then US crypto exchanges may be forced to delist SOL on their platforms.
If they wanted to keep offering trade in cryptocurrencies the SEC deems as securities, then they would need to register as securities exchanges, which many may not want to do.
While a conclusion to the just announced lawsuits against Coinbase and Binance may be some way off, exchanges may want to pre-emptively remove tokens like Solana
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