Solana Founder Stands with Ethereum to Fight SEC Security Classification

The Solana community, led by co-founder Anatoly Yakovenko, is backing Ethereum and taking a stand against the U.S. SEC amid push to categorize Ether (ETH) as a security.

Solana Stands Against SEC

Anatoly Yakovenko, Solana’s co-founder, has opposed the Securities and Exchange Commission’s (SEC) underground moves against Ethereum. According to disclosures by The Crypto Basic, the SEC is initiating a campaign to potentially classify ETH as security.

Insiders familiar with the situation have revealed that the SEC has demanded financial records and other documents from U.S. firms that have had a deal with the Ethereum Foundation.

Notably, the regulator has not officially remarked on this development at press time. Yet, the disclosure has sparked various reactions among prominent figures in the crypto community, including Yakovenko of Solana.

Yakovenko voiced opposition to ETH’s potential classification as security, stating:

“If the state is against Ethereum, then I am against the state.”

If the state is against ethereum then I am against the state

— toly 🇺🇸 (@aeyakovenko) March 21, 2024

“This is the energy we need in this space,” remarked X user Yuge on the Solana founder’s remark.

Solana Could be Next after ETH

Furthermore, some Community members pointed out that despite Ethereum being an adversary to Solana, it was right to stand in solidarity with ETH. They see safeguarding the space from detrimental classification as outweighing any internal competition within the industry.

For instance, another commenter stated, “ETH maximalists may be idiots. But they are our idiots,” echoing the rivalry among members of various crypto communities.

Additionally, some believe that Solana could be next in line if the SEC’s move against Ethereum succeeds. 

It is worth mentioning that the SEC has already tagged Solana as security. This classification occurred within the context of a lawsuit against the Binance exchange last June.

However, unlike its approach with XRP in previous years, the SEC has not lodged a formal complaint against other tokens categorized as securities alongside Solana.

US Politician Reacts

Nonetheless, considering the regulator’s history with Ethereum founders, the SEC’s alleged move to classify ETH as a security has surprised many. U.S. Congressman Patrick McHenry highlighted that the move contradicts the assessment of the CFTC and the SEC’s previous actions. 

Reports indicate @GaryGensler is moving to unilaterally classify #ETH as a security.

This is contrary to the @CFTC's assessment and the @SECgov's prior actions.

Congress decides the SEC's jurisdiction and budget, Chair Gensler doesn't get to make it up as he goes along. https://t.co/83DUkCjMVA

— Patrick McHenry (@PatrickMcHenry) March 20, 2024

Meanwhile, some ETH critics like attorney Steven Nerayoff, renowned in the XRP community for his contribution to ETHGate, suggest the SEC’s move is justifiable. According to him:

“The truth behind Ethereum and the SEC’s involvement is dark. It is about time we shine a light on the extensive corruption intertwining Ethereum and our government.”