Regulatory crisis halts massive investment in Solana from DeFi Development
June 12, 2025, 12:17 GMT+3
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The U.S. Securities and Exchange Commission (SEC) halted the registration application of DeFi Development Corp, which aims to fund a significant $1 billion investment in Solana, marking a temporary setback for the company's plan to expand into the cryptocurrency market, particularly Solana, which is the sixth-largest cryptocurrency globally and is gaining increasing importance in the decentralized finance (DeFi) ecosystem.
The decision came after the regulatory authority detected the absence of the required internal controls report within the 10-K form, rendering the application legally incomplete and thus ineligible for approval. The company was forced to temporarily withdraw the application after this regulatory failure.
The plan presented in April 2025 aimed to raise $1 billion to purchase Solana tokens, benefiting from the associated staking returns, as part of a long-term investment strategy similar to the investment approach in Bitcoin. DeFi Development, previously known as Janover, hoped to build a strong financial center by owning Solana tokens and collecting staking gains.
Despite the rejection of the application, the company confirmed that it intends to reapply after addressing compliance gaps, stating that no securities were issued during the process, and the offer was withdrawn immediately. It also emphasized its continued commitment to the plan to purchase Solana despite the temporary disruption.
The decision by the U.S. Securities and Exchange Commission to suspend the Solana funding plan raises questions about the regulatory strictness of U.S. authorities towards cryptocurrency investments and places additional pressure on companies aspiring to enter the Solana market and decentralized finance in general.