Filecoin Foundation rejects SEC’s classification of FIL as security

Filecoin Foundation refuted the U.S. Securities and Exchange Commission’s (SEC) assertion that its FIL token is a security, according to a statement shared with CryptoSlate.

On May 17, Grayscale said the SEC asked it to withdraw its registration statement for its Filecoin Trust because the token meets the definition of a security.

In an e-mailed response to 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:

“Over the last decade, thousands of people around the world have contributed to this open-source project to create a decentralized, efficient, and robust foundation for humanity’s most important information. That includes hundreds of organizations and teams building on the network, thousands of storage providers, and 13,000 Github contributors, building a foundational layer for the next generation of the web.”

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

Meanwhile, this is not the first time that the SEC would be describing 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.

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