#tradeLeauge SEC Rejects DeFi Development’s Plan to Buy $1B in Solana (SOL) 📉**

The **U.S. Securities and Exchange Commission (SEC)** has **rejected** DeFi Development’s proposal to issue **$1 billion in securities** for purchasing **Solana (SOL)**. The reason? **Missing documentation**! 📄❌ The company has now **withdrawn** its **Form S-3 registration**, promising to fix and resubmit it soon.

### **A Bold Bet on SOL Despite SEC Roadblock 🚀**

Despite the setback, DeFi Development has **already invested millions** in SOL over the past two months. But to **go big** (as planned), they need **more liquidity** from the securities offering—currently **blocked by the SEC**.

### $SOL

Why Solana? The "Altcoin Strategy" vs. Bitcoin 💡**

While many firms follow the **"Bitcoin Strategy"** (hoarding BTC as a reserve asset), DeFi Development is taking a **different path**: **Ethereum, Solana, and XRP**. Since **April**, they’ve pushed a **$1B fundraising plan** to buy **SOL**—potentially the **biggest corporate Solana purchase ever**.

### **SEC’s Rejection: Missing Internal Reports ⚖️**

The SEC shot down the proposal due to **lack of internal control reports**—a **key requirement**. DeFi Development stated:

> *“We’re withdrawing the registration as we currently don’t meet SEC’s Form S-3 criteria.”*

This **delays** their plan to use securities funds for SOL purchases. However, they’ve **already put $42M of their own money** into SOL (as of April).

### **Staking & Ecosystem Growth 🌱**

DeFi Development isn’t just buying—they’re also:

- **Staking SOL** 📊

- **Partnering** to expand Solana’s ecosystem 🤝

### **What’s Next? 🚨**

To **become a SOL whale**, they **need SEC approval**. The process started in April but got **rejected after 2 months**. The SEC’s red light has **paused** their **"Solana Strategy"** dream—for now.

**Thoughts?** Will DeFi Development succeed in its **big SOL bet**, or is the SEC hurdle too high? **Drop your take below!**