Solana Infrastructure Project Jito on Tuesday claimed his protocol’s flagship tuck, Jitosol, is not a security. That a crypto project would think that such a thing about its asset of $ 2.4 billion is hardly surprising. More interesting: The very public method that Jito delivered his opinion with.
The Jito Foundation’s new “Securities Classification Report” explains on 24 footnoted pages precisely why Jitosol is not, cannot and cannot fall under SEC supervision. It is the kind of interior baseball perspective that crypto lawyers often prepare for their clients, but rarely for public consumption.
Trump’s embrace of Krypto Emboldened Jito to say publicly what they were already thinking behind closed doors, people told the Jito Labs company, which builds the widely used piece of Solana infrastructure-to Coindesk. The project’s Cayman-based Jito Foundation drafted and released its own report to encourage other industry players to do the same.
“There is a lot of optimism right now from builders, and more willingness to try to work with regulators to create better rules for builders,” said Jito Lab’s CEO Lucas Brides.
Under the former President Joe Biden and former SEC chairmen Jay Clayton and Gary Gensler, the Agency brought a case against the alleged wrongdoing of many top crypto companies, including registration requirements. Now it is withdrawing and releasing high-profile litigation that questioned the legislative status of many warmly disputed corners of crypto-clad fluid stake symbols.
LSTs are a kind of deposit receipt that lets people access the value of assets (usually ETH or SOL), as they locked into insertion contracts, where these assets contribute to a blockchain network’s safety and also earn stack wages.
The sub -industry has exploded prominent over Crypto’s stack of blockchains. Ethereum hosts $ 26 billion LST, while Solana boasts a more modest $ 6 billion. Jito’s is the largest Solana LST with more than twice the value of runner-up.
SEC never accused Jito of breaking American law, nor did it do as much as talking to the backers of the project in the years earlier, people at Jito Labs told Coindesk. But the new Administration’s new look controller opened the door to a recent aggressive Jito: Founder Lucas Bruder met with Crypto Task Force in early February to discuss the stake.
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 issuing Jitosol works independently on top of a blockchain.
“The most important takeaway is that this is pure technology,” said Rebecca Rettig, Jito Labs’ legal adviser.
But the report also covers beyond the fixed securities legislation to touch the pro-crrypto vibes that originate from the White House. In a section, it invokes his executive order to make the United States the global crypto capital.
“The consequence of using federal securities and regulation, which they are currently facing fluid solutions, would be to make them unavailable by regulating them out of existence, as opposed to the goals of the executive order,” the report said.
