- SEC blocked DeFi Development’s $1 billion Solana investment over missing internal controls report.
- Solana saw $423 million inflow as investor caution rises after DeFi filing setback.
In a move that highlights ongoing regulatory hurdles for crypto firms, the U.S. Securities and Exchange Commission (SEC) has halted a $1 billion registration attempt by DeFi Development Corp.
The company, formerly known as Janover, had aimed to direct the capital toward investments in the Solana [SOL] blockchain.
Why did the SEC make this move?
However, the SEC flagged the filing as noncompliant due to the absence of a mandatory internal controls report in its Form 10-K.
This compliance lapse prompted DeFi Development to withdraw its Form S-3 registration, with intentions to submit a revised version at a later date.
In a notice filed on the 11th of June, the Nasdaq-listed firm explained that the absence of a management report on internal control over financial reporting disqualified it from using the Form S-3.
That being said, the withdrawn filing, initially submitted in April 2025, outlined plans to use a substantial share of the raised funds to acquire Solana tokens.
Aftermath of this move
However, despite the regulatory setback, DeFi Development Corp has reaffirmed its plan to raise funds by acquiring Solana tokens and intends to submit a revised resale registration at a later date.
Following the SEC’s decision, the company is now working to address compliance concerns before reapplying.
For now, the market is closely watching to see whether the updated filing will receive regulatory approval.
Solana still steals the spotlight
Needless to say, the delay may have impacted short-term market sentiment, with SOL trading at $159.40 at press time after a 4.05% dip over the past 24 hours, according to CoinMarketCap.
Yet, interest in the asset remains high.
Glassnode data recently revealed that more than 2.7 million SOL, worth roughly $423 million, returned to exchanges in just nine days, suggesting a wave of caution among investors.
Nevertheless, Solana continues to command attention, underscoring its relevance in ongoing crypto investment narratives.
