The Solana infrastructure project, Jito, said Tuesday that the flagship token of its protocol, Jitosol, is not security. That a cryptographic project believes that such a thing of its asset of $ 2.4 billion is not surprising. More interesting: the public method with which Jito delivered his opinion.
The new “Securities Classification Report” of the Jito Foundation explains in 24 pages with footnotes precisely why Jitosol is not, cannot and will not fall into the supervision of the SEC. It is the type of internal perspective of baseball that cryptographic lawyers often prepare for their clients, but rarely for public consumption.
Trump’s hug from Cryptographic emboldened Jito to say in public what they already thought behind closed doors, people in Jito Labs: the company that builds the widely used piece of Solana infrastructure, he told Coindesk. The Jito Foundation based in Cayman of the project wrote and published its own report to encourage other industry actors to do the same.
“At this time there is much optimism of builders, and more willingness to try to work with regulators to create better rules for builders,” said Jito Labs CEO Lucas Bruder.
Under former President Joe Biden and former presidents of the SEC, Jay Clayton and Gary Gensler, the agency filed a lawsuit against many of the alleged misdeeds of the main cryptographic companies, including registration claims. Now he is retiring, dropping high profile demands that questioned the regulatory state of many very disputed cryptography corners, including liquid files.
The LSTs are a kind of deposit receipt that allows people to access the value of assets (usually ETH or Sun) that locked in rethinking contracts, where these assets contribute to the safety of a blockchain network and also obtain betting rewards.
Subindustration has exploded in prominence through Crypto’s blockchains firms. Ethereum is host of $ 26 billion LSTs, while Solana has more modest $ 6 billion. Jito’s is the largest LST Solana for more than double the value of the runner -up.
The SEC never accused Jito of infringing the law of the United States, nor did he do so as to talk to the sponsors of the project in past years, they told the people of Jito Labs to Coindesk. But the new regulator of the new administration opened the door for a recently aggressive Jito: Founder Lucas Buder met with the Crypto task force in early February to discuss the reverse.
The new classification report compares Jitosol with the well -known Howey test, a legal framework to determine if an asset is an investment contract and, therefore, a security. Among its main points: the program issued by Jitosol operates independently on a block chain.
“The most important conclusion is that this is pure technology,” said Retecca Rettig, legal advisor of Jito Labs.
But the report also deepens beyond Staid’s securities laws to touch the pro-crypto vibrations emanating from the White House. In a section he invokes his executive order to make the United States the global capital of cryptography.
“The consequence of applying the law and the regulation of federal values, since they currently find solutions that apply liquids would be to make them not available by regulating them out of existence, contrary to the objectives of the executive order,” the report said.
