Solana #sol is said to be under investigation, according to a prominent influencer on the social media platform X. Details are still unclear.
Solana is among the cryptocurrencies that received a “safety” rating by the US Securities and Exchange Commission (SEC) last year.For an advertising service for crypto projects
Solana is allegedly under criminal investigation
Prominent influencer Crypto Bitlord, who has nearly 330,000 followers on X, cited rumors of a possible criminal investigation against Solana. The investigation is said to have been underway for weeks and could have a negative impact on the altcoin.
“We are hearing rumors that Solana is under investigation and a big case is about to become public. This has been developing for weeks now and it couldn't come at a worse time. If what we heard is true, start praying for Solana,” Pitlord noted.
The basis of the alleged investigation and who is leading the investigation remain unclear. However, there is speculation that she is SEC-bound after Solana was classified as a safety. As were Polygon $MATIC and Cardano $ADA
Also on the financial regulator's list of currencies designated as securities.
In addition to the designation, the SEC filed a lawsuit against Binance and Coinbase, accusing them of trading unregistered securities. The crux of this lawsuit comes down to the Howey Test, a legal framework that determines whether an investment is considered a safety. At the time, SEC Chairman Gary Gensler said that “everything except Bitcoin” could be classified as a security.
Like Solana, Ethereum has also attracted attention from regulators due to concerns about being classified as an unregistered security. However, the recent closure of the investigation in favor of Ethereum has restored confidence to investors. In contrast, legal expert Drew Hincks believes that Solana may not experience the same positive outcome.
“The investigation into Ethereum 2.0 was a victory for the company but it doesn’t mean much for other [proof of stake] POS coins,” Hinkes noted.
The legal expert points out that the remaining coins are still under accountability. PoS coins such as Solana and Polygon have not yet been investigated, as in the case of Ethereum 2.0. Therefore, its facts regarding creation and distribution, among other parameters, may differ from those of Ethereum #etherreum
