Polygon Responds to SEC’s Claim of MATIC Being a Security

Table of Contents

• Robinhood Delists Solana, Cardano and Polygon
• Polygon Responds to SEC Claims
• Market Takes a Dive

Polygon Labs has responded to the SEC’s claims that its native token MATIC is an unregistered security.

The US SEC last week labelled Polygon and other popular cryptocurrencies unregistered securities in a lawsuit filed against crypto exchange Binance.

The SEC named Solana (SOL), Cardano (ADA), Cosmos Hub (ATOM), Filecoin (FIL), Decentraland (MANA), Algorand (ALGO), The Sandbox (SAND), Coti (COTI), and Axie Infinity (AXS) as unregistered securities.

Robinhood Delists Solana, Cardano and Polygon

Following the SEC’s lawsuits, trading app Robinhood announced it would end support for SOL, ADA, and MATIC on June 27.

Robinhood limited its delisting to SOL, ADA, and MATIC and said to users that no other coins would be affected and would remain safe on its platform.

Polygon Responds to SEC Claims

Polygon Labs responded to the SEC’s allegations on Friday.

We are proud of the history of the Polygon network – 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…

— Polygon (Labs) (@0xPolygonLabs) June 10, 2023

They stated that the token was “developed outside the U.S., deployed outside the U.S. and focused to this day on the global community that supports the network.”

It further claimed:

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.

Polygon also noted that its actions did not target the US at any time:

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.

Market Takes a Dive

In the days following the SEC’s claims against Binance and rival exchange Coinbase, the overall crypto market appeared to hold firm.

However, Saturday was an absolute bloodbath, with ADA, SOL and MATIC seeing double-digit losses.

Data from CoinMarketCap reveals MATIC’s price declined by 33% in the past week. At the time of writing, MATIC changed hands at $0.64.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.