- SEC’s allegations labeling ADA, MATIC, and SOL as unregistered securities have been firmly countered by Solana Foundation and Polygon Labs.
- Both SOL and MATIC witnessed significant price drops following SEC’s accusations, prompting official responses from their respective organizations.
In the cryptoverse, a tussle is brewing between the Securities and Exchange Commission (SEC) and major altcoin organizations, Solana Foundation and Polygon Labs. Their bone of contention stems from the SEC’s recent allegations claiming SOL and MATIC, along with ADA, are unregistered securities. This, as one would imagine, has not sat well with the accused entities.
Witnessing a direct hit to their market value after the SEC’s allegations, both SOL and MATIC had their parent organizations step into the ring to refute the SEC’s claims. Polygon Labs swiftly responded to the charges that painted MATIC, trading at $0.9 last week, as an unregistered security. As the accusation took hold, MATIC experienced a price plunge, first to $0.8, and then a near 40% drop to $0.5.
Undeterred, Polygon Labs issued a clear rebuttal, stating that the Polygon blockchain was developed, deployed, and is currently focused on the global community, outside the confines of the US. According to them,
“MATIC was a necessary part of the Polygon technology from Day 1, ensuring that the network would be secure – and remains so to this day. Given our focus on network security, we made sure MATIC was available to a wide group of persons, but only with actions that did not target the US at any time.”
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SOL followed a similar trajectory to MATIC, standing at $22 last Sunday and retracting to just under $20 during the week, then undergoing a more than 30% slump on Friday and Saturday. The Solana Foundation, in response, expressed its disagreement with SEC’s characterization of SOL as a security. The Foundation expressed its readiness to collaborate with global regulators to frame clear legislative frameworks, but firmly refuted the SEC’s portrayal of SOL.
It’s clear from these reactions that the blockchain powerhouses are not ready to roll over in the face of regulatory scrutiny. The stage is set for an intriguing contest between the SEC and these leading crypto entities as they defend the integrity and independence of their digital assets.
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