Filecoin Foundation Dismisses SEC’s Claim That FIL Token is a Security

Filecoin Foundation Dismisses SEC’s Claim That FIL Token is a Security

The Filecoin Foundation has rejected the Securities and Exchange Commission’s (SEC) assertion that its FIL token is a security. The SEC had previously asked Grayscale to withdraw its registration statement for Filecoin Trust because the token met the definition of a security.

The Filecoin Foundation’s Response

In a statement shared with CryptoSlate, the Filecoin Foundation described the blockchain network as a decentralized, peer-to-peer network for storing files and emphatically stated that FIL was not a security. The Foundation added that thousands of people around the world had contributed to the open-source project over the last decade to create a decentralized, efficient, and robust foundation for humanity’s most important information.

Impact on FIL Token

The SEC’s news had no impact on FIL, which rose 1.87% in the last 24 hours to $4.51097 as of press time, according to CryptoSlate’s data.

SEC’s Classification of Crypto Projects as Securities

This is not the first time that the SEC has described a crypto project as a security. In April, the Algorand Foundation refuted the Commission’s classification of its ALGO token as a security. However, SEC chair Gary Gensler has maintained that all digital assets except Bitcoin (BTC) are securities and highlighted the noncompliance of crypto firms.

The Filecoin Foundation has responded to the SEC’s assertion that its FIL token is a security. The Foundation explained that the blockchain network is a decentralized, peer-to-peer network for storing files and that FIL is not a security. The SEC’s classification of crypto projects as securities is not a new development, with the Algorand Foundation also refuting the Commission’s classification of its ALGO token as a security. However, SEC chair Gary Gensler has been vocal in maintaining that all digital assets except Bitcoin are securities and has highlighted the noncompliance of crypto firms. Despite the SEC’s news, FIL has seen a rise in value over the last 24 hours according to CryptoSlate’s data.

Regulation

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