November 21, 2023
Despite being named in the Kraken lawsuit and facing enforcement actions from the SEC, many tokens have actually seen double-digit gains year-to-date. This challenges the assumption that being targeted by the SEC would lead to depressed prices. Traders seem to value technical capability over regulatory compliance, or they recognize that the SEC is not the only regulatory authority.
According to on-chain data, the tokens mentioned in the lawsuit have outperformed bitcoin as part of a broader market rally. On average, these tokens have seen a 41% increase in value. Solana's SOL token, in particular, has experienced an impressive 463% gain year-to-date.
When the SEC first accused Solana's SOL token of being an unregistered security, the Solana Foundation swiftly denied the accusations. The developer community, as reported by CoinDesk, appeared largely indifferent to the allegations.
The market data suggests that traders prioritize technical capability and potential gains over regulatory concerns. This highlights the importance of understanding the broader market dynamics and considering multiple regulatory authorities when evaluating token investments.