As of November 21, the SOL price was trading at $55, down 20 percent from its local peak of $60.50 just five days ago. This decline mirrored similar movements elsewhere in the crypto market. As is known, Bitcoin and Ethereum also fell by 2.2 percent and 5.5 percent, respectively, from their local peaks.
The drop in Solana’s price coincided with the United States Securities and Exchange Commission’s (SEC) recent lawsuit filing against crypto exchange Kraken. In their Nov. 20 filing, the regulator accused Kraken of violating securities laws.
In doing so, the SEC labeled a number of cryptocurrencies as “securities,” including Solana. The price of SOL decreased by 10.25 percent during this period.
Other tokens named in the SEC lawsuit fell similarly; Among these was ADA, whose price decreased by 5.5 percent after the Kraken news.
On the other hand, the SEC’s designation of SOL as a security could impact its availability on cryptocurrency exchanges in the US, which could be similar to the effect seen with XRP.
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