Solana and Polygon Contest SEC’s Securities Classification of SOL and MATIC

Solana Foundation and Polygon Labs Push Back Against the SEC

Both the Solana Foundation and Polygon Labs are among the latest entities to contest the U.S. Securities and Exchange Commission’s (SEC) classification of their respective tokens as securities.

Solana Foundation’s Response

The Solana Foundation, responsible for the development of the Solana blockchain, has expressed its disagreement with the SEC’s assessment, emphasizing its commitment to operate outside the scope of U.S. markets.

The foundation has shown willingness to cooperate with regulators to bring clarity to the emerging digital asset industry. Despite the SEC’s classification of SOL, the native cryptocurrency of the Solana network, as a security, the foundation welcomes engagement with policymakers to achieve legal clarity for entrepreneurs in the digital asset space.

Polygon Labs’ Statement

Similarly, Polygon Labs clarified that their token, MATIC, was not targeted at the U.S. market. The development team has ensured that MATIC is available to a broad group of users while maintaining its focus on the global community.

Other Tokens Labeled as Securities

In addition to SOL and MATIC, the SEC’s lawsuits have also identified other tokens, including cardano (ADA), Sandbox (SAND), filecoin (FIL), and Axie Infinity (AXS), as securities.

Market Performance

Despite the SEC’s actions, MATIC experienced an 8% increase in the past 24 hours, reaching $0.6273 at the time of writing, according to CoinGecko data.

SOL, on the other hand, saw a 5.7% rally in the past 24 hours, reaching $15.58, with a trading volume of more than $733 million. However, the token’s price has faced downward pressure, declining by over 20% in the past seven days following its delisting from Robinhood and subsequent whale sell-offs.

Implications for the Crypto Industry

The outcome of the SEC’s lawsuits will undoubtedly have far-reaching implications for the cryptocurrency industry, particularly regarding the regulatory classification of tokens.

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