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US SEC Blocks $1B DeFi Development Filing Tied to Solana Purchase Plan
The U.S. Securities and Exchange Commission (SEC) has blocked DeFi Development Corp’s $1 billion registration filing. The company had intended to use the funds to invest in the Solana blockchain. However, the SEC found that the filing was ineligible due to missing a required internal controls report in the Form 10-K. As a result, the company has withdrawn the filing and plans to refile in the future.
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US SEC’s Reason for Blocking the Filing
The US SEC’s decision to block the filing stems from a compliance issue with DeFi Development’s documentation. In its Form S-3 registration, the company failed to include a necessary internal controls report. This report is a key requirement for any company wishing to file for capital raises and conduct securities offerings. Without this report, the SEC deemed the filing ineligible, which led to the withdrawal of the $1 billion registration.
DeFi Development Corp, which had previously operated under the name Janover, filed for the offering in late April 2025. The company had aimed to raise over $1 billion for general corporate purposes, specifically to purchase Solana tokens. According to the filing, part of the funds were earmarked for investing in Solana, the sixth-largest cryptocurrency by market capitalization at the time.
Despite the withdrawal, the company stated its intention to refile in the future after addressing the SEC’s concerns. The company emphasized that no securities were issued during this process.
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DeFi Development’s Investment Focus
The main purpose of the $1 billion filing was to acquire Solana tokens. Solana was chosen as a primary focus due to its positioning in the cryptocurrency market. The filing specifically mentioned that the investment would allow the company to purchase more Solana tokens like the Strategy Bitcoin plan and benefit from potential staking rewards.
Staking rewards in Solana can provide a return on investment, but only if the value of Solana appreciates after the tokens are purchased.
The company outlined this in its filing, stating that the funds raised would go toward acquiring Solana with the expectation of generating a return from staking activities. However, as of now, the future of this investment plan remains uncertain due to the SEC’s actions.
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Future Plans and Market Reaction
In the aftermath of the US SEC ruling, DeFi Development Corp has indicated clearly that it shall refile the registration in the future. The company is still expected to go ahead with its plan of fundraising to acquire Solana tokens, and the market is anticipating to observe whether the filing will meet regulatory approval when refiled.
This notification of withdrawal has brought into question how regulatory agencies such as the SEC will approach the same investment plans going forward, and more so in cases involving cryptocurrency-related projects. At this point, the next steps of DeFi Development Corp will be based on sorting out the concerns raised by SEC.
Although the short-term failure will likely postpone the intentions of the company, the investment in Solana might still be a central element of its investment strategy in the future.
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