Solana Policy Institute Urges SEC to Exempt DeFi Developers as SOL Targets $162
The Solana Policy Institute submitted comments to the U.S. SEC (response filed Jan 9, 2026) urging clearer rules that distinguish non-custodial DeFi software developers from exchanges and broker-dealers. The institute argued existing exchange/ATS frameworks are aimed at centralized venues and can inappropriately sweep in open-source, non-custodial tools, raising legal risk for builders and driving innovation offshore. Key asks included bright-line custody and transaction-control tests, confirmation that publishing software is not operating a trading venue, and targeted amendments excluding non-custodial software from “exchange” definitions while reserving enforcement for actors who take custody or direct execution. Separately, SOL price action showed upward momentum: trading near $142.74 (up 0.73% 24h) with seven-day gains of 2.85%, ~570M circulating supply and a market cap around $80.7B. Technical commentary cited an “ascending accumulation” pattern, support at $139–$140, supply at $144–$146, a breakout target near $152 and a higher-range target of $160–$162 if momentum continues. Primary keywords: Solana, DeFi rules, SEC, SOL price, non-custodial. Secondary/semantic keywords: custody test, exchange definition, developer guidance, ascending accumulation, price resistance. This story matters to traders because regulatory clarification could affect US developer activity and onshore innovation, while the technical setup identifies short-term resistance and upside targets for SOL.
Bullish
The news combines regulatory lobbying that, if successful, would be positive for onshore DeFi development and a constructive technical setup for SOL. The Solana Policy Institute’s push for bright-line custody and transaction-control tests reduces legal uncertainty for developers; clearer rules that exempt non-custodial software from exchange definitions lower the risk of enforcement actions that could chill U.S. development or prompt teams to relocate. Reduced regulatory risk is typically supportive for token ecosystems over the medium term. On price action, SOL shows an ascending accumulation pattern with defended higher lows, immediate resistance at $144–$146 and near-term upside targets at $152 and $160–$162 on a decisive break. Traders may react positively: short-term momentum trades could target the $152 breakout and $160–$162 extension, while stops under $139–$140 would manage downside risk. Caveats: regulatory outcomes are uncertain and not immediate — lobbying success is not guaranteed — and broader crypto market conditions (macro, BTC direction, liquidity) can override asset-specific drivers. Historically, regulatory clarity stories that reduce enforcement risk (e.g., guidance that narrowed applicability for developer actions) have been bullish for token prices as they attract developer activity and capital; conversely, adverse rulings or aggressive enforcement spark sell-offs. Overall, this item is a bullish catalyst but dependent on execution and broader market context.