Polygon, Solana Join Cardano in Dismissing the SEC's Allegations

The Securities and Exchange Commission alleged that some of the largest altcoins, such as ADA, MATIC, and SOL, are unregistered securities.

Most assets slumped in value shortly after the allegations went out. Now, though, the organizations between the blockchains and the tokens have published official statements to refute the SEC’s claims.

Polygon Responds

MATIC traded at $0.9 last week, just a few days before the SEC went after Binance and Coinbase, alleging in the lawsuits that the asset is an unregistered security. At first, MATIC declined alongside the rest of the market to $0.8. However, the situation worsened on Friday when it plummeted by almost 40% in a day to a multi-month low at $0.5.

Amid the harmful price drops, Polygon Labs decided to respond to the allegations. The organization said the Polygon blockchain was “developed outside the US, deployed outside the US, and focused to this day on the global community that supports the network.”

“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.” – the statement reads.

Solana Disagrees, too

SOL’s performance was quite similar to MATIC, given that it was also alleged to be an unregistered security. It stood at $22 last Sunday, retraced to just under $20 during the week, and then dumped by more than 30% on Friday and Saturday.

The Solana Foundation, similar to the team behind Cardano, has also refuted the SEC’s claims. The statement informed that the SF is looking forward to working with global regulators to establish clear legislative frameworks but “disagrees with the characterization of SOL as a security.”

The Solana Foundation disagrees with the characterization of SOL as a security. We welcome the continued engagement of policymakers as constructive partners on regulation to achieve legal clarity on these issues for the thousands of entrepreneurs across the U.S. building in the…

— Solana Foundation (@SolanaFndn) June 10, 2023