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.

The post Filecoin Foundation rejects SEC’s classification of FIL as security appeared first on CryptoSlate.

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.

The post Filecoin Foundation rejects SEC’s classification of FIL as security appeared first on CryptoSlate.