Solana co-founder calls for regulatory clarity

Journalist

Posted: September 20, 2023

Solana co-founder Anatoly Yakovenko expressed his thoughts on the importance of regulatory frameworks.
Solana short-term descending resistance breakout heralded good news for bears.

While blockchain technology represents the next step in the natural progression of digital tech, it has not been a smooth ride. Solana’s [SOL] co-founder, Anatoly Yakovenko, recently highlighted the lack of proper regulatory frameworks as the biggest challenge for the blockchain industry.

Is your portfolio green? Check out the SOL Profit Calculator

According to the Solana co-founder, blockchain technology offers an opportunity for many developers interested in developing WEB3. However, the lack of regulatory clarity posed a challenge.

He further believed that the best way to overcome this roadblock was for regulators to implement a proper regulatory framework that would ensure compliance.

Today, Solana Labs co-founder @aeyakovenko called for U.S. policymakers to clarify regulations around blockchain technology in order to maintain technological innovation in the U.S. and better support web3 entrepreneurs.

Read more in @FortuneMagazine https://t.co/RwJNt4tu97

— Solana (@solana) September 18, 2023

Anatoly also noted that many young blockchain developers that aspire to be successful are forced to consider leaving the U.S. This was because of the lack of regulation and the fact that the government has not been very welcoming to blockchain.

With regard to regulation, the Solana co-founder stated,

“It’s well-documented that there’s no viable path to reasonable regulatory certainty in the space. For young entrepreneurs, the absence of clear rules is terrifying. They see public, multi-billion dollar companies struggle to navigate the legal landscape and wonder how their tiny project will survive.”

In addition to the regulatory situation, Anatoly also touched on why Visa’s decision to embrace Solana could be a huge deal. He noted that early adopters such as Visa will deploy and test their products on the blockchain.

Anatoly even mentioned that revenue levels from those deployments could identify when cryptocurrencies achieved mainstream adoption.

Why is Visa’s Solana announcement so important for crypto’s adoption?

Links to subscribe for the full @aeyakovenko episode ↓ pic.twitter.com/99XWXOD0lE

— Lightspeed (@Lightspeedpodhq) September 18, 2023

Will SOL’s short-term breakout persist?

SOL’s latest upside at press time highlighted a breakout above its descending resistance line. Why is this important? Well, an extended rally could indicate that SOL’s bullish swing was in full effect, and that more upside was expected.

On the other hand, the MFI leveled out at the time of writing, meaning that outflows might be in the works.

Source: TradingView

So far, the MFI does not indicate any outflows, while the RSI crossed above the 50% level at press time. This confirmed bullish resilience, but capitulation could follow now that demand has slowed down.

How much are 1,10,100 SOLs worth today?

Solana’s long versus short liquidations revealed that there are more bearish expectations than bullish ones.

Source: Cryptoquant

Meanwhile, on-chain data also reveals a surge in activity in the last few days, as indicated by the spike in volume. Also, development activity rose over the past week, which aligned with the confidence that has prevailed in the market during the same period.