Solana Co-Founder Slams on Crypto Regulations in US, SOL Surges

Pathik Bhattacharya
Pathik Bhattacharya Published on September 19, 2023 09:30 AM

Anatoly Yakovenko, co-founder of Solana, urged the US government not to wait for ideal legislation to boost innovation.

Solana Co-Founder Slams on Crypto Regulations in US
Source: Gemini

Solana's co-founder, Anatoly Yakovenko, has offered insights into the delicate balance between regulation and innovation in the cryptocurrency space. He cautions against letting the pursuit of perfection hinder progress, acknowledging that no legislation can be flawless.

Yakovenko emphasizes the need for the U.S. government to forge ahead with regulations, even if they aren't perfect. He underscores the importance of protecting technological leadership, market integrity, and an open internet.

Politicians Taking Advantage, Says Yakovenko

Yakovenko argues for granting politicians the freedom to experiment with cryptocurrencies, even in the face of existing prohibitive laws. He believes this hands-on experience will enable them to formulate more relevant and effective legislation.

He points out that restrictions on government officials' use of digital assets due to ethics rules can impede the crafting of informed policies, likening it to trying to regulate social media without ever using platforms like Facebook.

Yakovenko highlights the financial hurdles faced by blockchain startups, emphasizing that their establishment costs are significantly higher compared to traditional companies. He underscores the substantial investments of time, energy, and financial resources required to navigate the legal complexities associated with blockchain operations.

Yakovenko acknowledges the prevalence of scams in the crypto industry but advocates for a balanced approach. He contends that while efforts should be made to eliminate scams, it's important not to unfairly penalize the entire industry for the actions of a few bad actors.

Solana Price Analysis

Solana, founded by Yakovenko in 2017, has been making notable strides. The SOL token, launched in March 2020, has seen remarkable growth, reaching an all-time high of $259 in November 2021. As of the latest data, Solana is trading at approximately $20.

As per CoinStats, Solana has demonstrated resilience, gaining nearly 5% in the past 24 hours, with the SOL price hovering around $20. This move extends its weekly gains to 10%. The market structure, however, maintains a bearish tone, emphasizing the importance of key support levels for potential bullish momentum.

solana price chart

Source: CoinStats

The Fibonacci retracement levels indicated $20.18 as the 61.8% level. The current circumstance maintains the decline and market structure. The Relative Strength Index (RSI) was below 50, emphasising the negative trend. The bulls must hold the line at the 78.6% retracement level, which is now valued at $16.94.

A test of this level could signal a buying opportunity, with potential targets including the local highs of $25.5, $29, and an ambitious $32.

However, there is one essential component that may have a short-term impact on Solana's trajectory. This reason centres upon the probable liquidation of a significant Solana reserve held by the troubled cryptocurrency exchange FTX, which totals an astounding $1.16 billion. The outcome of this liquidation process has the potential to have a substantial impact on Solana's price stability.

sol price chart

Source: TradingView


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