What are Solana's main risks? The SEC mentioned SOL half a year ago as an unregistered security.

Public chain Solana exceeded $125 today, setting a new high in 20 months, but do you still remember? SOL was named by the SEC as an unregistered security almost half a year ago, and it fell by more than 20% in a single day. If the SEC officially steps up its crackdown, it may bring serious headwinds.

SEC has named SOL, ADA, MATIC, FIL...all securities

In June this year, Binance was sued by the U.S. Securities and Exchange Commission (SEC), accusing it of violating multiple Securities laws. In the lawsuit documents, the SEC mentioned SOL, ADA, MATIC, FIL and other tokens, calling them unregistered securities. The accusation caused a market crash for a range of altcoins.

At the time, the cryptocurrency market was worried about Coinbase, Kraken and other U.S. exchanges, which had to consider whether to delist certain tokens as regulations became more stringent. At the same time, U.S. market makers will also be affected, as they may have to stop providing market making services for tokens classified as securities.

Altcoins may fall further, especially amid uncertainty over SEC regulatory and legal risks, as token liquidity is lost.

XRP win brings turnaround

Large-scale actions in June unnerved the cryptocurrency industry. However, in July, public chain Ripple engaged in an important legal debate with the U.S. Securities and Exchange Commission (SEC) over whether XRP tokens were securities. US Judge Analisa Torres issued an important ruling, ruling in favor of the company Ripple, stating that Ripple’s sale of XRP through exchanges does not constitute a security. This ruling brings an important turn for the entire industry.

This ruling weakens the SEC’s statement that almost all tokens are securities. Investors have begun to re-evaluate the potential value and risks of individual tokens and no longer generally regard them as securities.

Will SOL still fall under the "crying wolf effect"?

In November, the SEC again filed a lawsuit against cryptocurrency exchange Kraken, accusing it of illegally operating a virtual securities exchange, broker and clearing house, while claiming that Kraken mixed customers’ crypto assets with its own funds. , and is not registered with the SEC.

It is worth mentioning that the SEC once again called out 11 cryptocurrencies, including SOL, ADA, MATIC, etc., as all securities; however, the market seems to have gradually become numb to this stance of the SEC. The market hasn't been too volatile.

Despite facing potential selling pressure from FTX and the SEC’s pending “cryptocurrency securities theory,” the price of public chain Solana (SOL) has continued to rise by more than 470% since mid-October. It remains to be seen whether it can continue to grow in the future as U.S. regulations gradually become clearer.

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