The Solana Infrastructure Project Jito on Tuesday claimed the flagship protocol Jitosol, was not a security. That a crypto project believes in such a $ 2.4 billion owner is less surprising. More interesting: The very public method by which Jito conveyed his opinion.
The new “Report of SECURITY OF THE SECURITY OF THE JITO FOUNDATION” explains the 24 footnoted pages that are certain why not Jitosol, not and will not fall under SEC Oversight. This is the kind of view within baseball that crypto lawyers often prepare for their clients, but it is rare for public consumption.
Trump’s embrace of Crypto has strengthened Jito to publicly tell the public what they thought behind the closed doors, the people in the Jito Labs-the company that builds a widely used piece of Solana-said in CoinDesk. The project-based Jito Foundation drafted and released its own report to encourage other industry players to do so.
“There is a lot of optimization today from the builders, and more willing to try to work with regulators to create better policies for builders,” said Jito Labs CEO Lucas Bruder.
Under former president Joe Biden and former SEC chairs Jay Clayton and Gary Gensler, the agency has filed a suit against many leading errors of crypto companies, including registration claims. It is now pulling, lowering high-profile suits that have asked the regulatory status of many hotly disputed crypto corners-including liquid staking tokens.
LSTS is a type of deposit receipt that lets people access the value of the property (usually ETH or SOL) that they are locked in staking contracts, where those possessions contribute to the security of a blockchain and also earn rewards.
The sub-industry has exploded in popularity throughout the crypto stake blockchains. The Ethereum hosts the LST’s $ 26 billion, while Solana boasts a more modest $ 6 billion. Jito’s is the largest Solana LST of more than double the runner-up value.
The SEC has not accused Jito of violating US law, nor did it talk to project supporters in recent years, people in Jito Labs told CoinDesk. But the new administration’s new administration opened the door for a new aggressive Jito: founder Lucas Bruder met with the Crypto Task Force in early February to discuss staking.
The new classification report compares Jitosol against the well-known Howey Test, a legal framework for determining whether an property is an investment contract, and therefore a security. Among its key points: the Jitosol release program operates independently of a blockchain.
“The most important takeaway is that this is pure technology,” said Rebecca Rettig, Jito Labs’ legal advice.
But the report also delivers the laws of Staid Securities to hold pro-crypto vibes from the White House. In one section it urges its executive order to make deer global crypto capital.
“The consequence of applying the law and regulation of federal security because they are currently standing in liquid-staking solutions is to provide them unavailable by regulating them in existence, contrary to the purposes of the executive command,” the report said.
