Why Solana’s Cryptocurrency Is Gaining – The Motley Fool

Why Solana’s Cryptocurrency Is Gaining – The Motley Fool

What happened

Solana‘s (CRYPTO:SOL) cryptocurrency saw significant sell-offs on Tuesday due to a network outage, but it’s bouncing back in Wednesday’s trading. The price per SOL token was up roughly 6% on the day as of 5:45 p.m. EDT.

The Solana blockchain network went offline on Tuesday due to high transaction volume, but the team was able to get things fixed relatively quickly, and the price of its crypto token subsequently recovered. It also looks like investors are shrugging off some potential tax and regulatory changes that could impact the broader crypto space. 

A piggy bank launching like a rocket.

Image source: Getty Images.

So what

Top cryptocurrencies came under pricing pressure at the beginning of the week as Democrats in the House of Representatives put forward tax changes that would have the IRS treat crypto tokens as securities rather than property. This would mean that cryptocurrencies would be subject to wash-sale rules, closing a loophole that’s allowed traders to engage in short-term transactions while still treating sales made at a loss as tax-deductible events.

This was followed by comments from SEC chair Gary Gensler at a Senate hearing on Tuesday, indicating that stablecoins and crypto lending and staking services could