Crypto influencer, Crypto Bitlord, has sparked regulatory concerns over popular cryptocurrency Solana (SOL), hinting on Twitter that the platform may be under investigation. BitLord’s post suggested that the information has been circulating in the underworld of crypto-related gossip for several weeks, yet specifics about the investigation – including details about the rumored investigation’s basis and the regulatory body in charge – remain vague.
This is not the first time Solana has raised regulatory eyebrows. Last year, the U.S Securities and Exchange Commission (SEC) categorized SOL, alongside Polygon (MATIC) and Cardano (ADA), as a security. This in itself can lead to significant legal complications, as Binance and Coinbase found out when they faced SEC lawsuits for dealing in unregistered securities.
Cryptocurrency Ethereum likewise found itself in the SEC’s crosshairs over potential security status, but it recently emerged triumphant, reviving investor faith in the process. Yet, legal expert Drew Hinkes warned that Solana may not be so lucky. Hinkes cautioned that Ethereum’s win isn’t an automatic victory for other Proof-of-Stake (PoS) tokens like Solana. Each coin’s creation, distribution, and operation parameters could lead to different legal conclusions, meaning Solana and others could still be facing regulatory risks.