The Solana (CRYPTO: SOL) ecosystem cheered on Tuesday after the Securities and Exchange Commission issued an interpretation clarifying that most cryptocurrency assets are not securities.
Solana Among Several Cryptos Declared Securities
Solana’s official handle took to X, pointing to the latest guidance that resolved a long-standing uncertainty over the fate of cryptocurrencies.
“After more than a decade of uncertainty, this interpretation will provide market participants with a clear understanding of how the Commission treats crypto assets under federal securities laws,” SEC Chair Paul Atkins said. “It also acknowledges what the former administration refused to recognize – that most crypto assets are not themselves securities.”
The regulators interpreted that assets linked to and derived from the “programmatic operation of a cryptocurrency system,” as well as supply and demand dynamics, rather than from the “expectation of profits from the essential managerial efforts of others,” are to be classified as commodities.
Non-fungible tokens and dollar-backed stablecoins were also declared commodities, while tokenized securities would come under the federal securities laws.
Litecoin’s Snarky Remarks
Meanwhile, Litecoin’s official X handle threw a shade at Solana, stating, “Some earn their way, others pay to be there. I earned it.”
Note that Litecoin evaded scrutiny from U.S. regulators on the contentious security Vs. commodity debate, and was seen, for a long time, as the only other commodity in the cryptocurrency market apart from Bitcoin (CRYPTO: BTC).
The new guidance differed sharply from the Gary Gensler-led SEC, which viewed cryptocurrencies other than Bitcoin as securities and treated them as “highly speculative, volatile assets” that most investors misunderstood.
Price Action: At the time of writing, SOL was exchanging hands at $94.46, down 1.12% in the last 24 hours, according to data from Benzinga Pro.
Photo Courtesy: CryptoFX on Shutterstock.com
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