Polygon Labs Denies SEC’s Security Allegation For MATIC Token

Key Points:

• Polygon Labs responds to SEC’s claim that MATIC is a security.​
• Polygon Labs defends that MATIC is not an unregistered security, stating that it was developed and deployed outside the US and focuses on the global community.​
• MATIC’s price has declined nearly 2% on the day and over 33% in the past week, following its delisting from Robinhood and the SEC’s lawsuit against Binance.

Polygon Labs has made a statement in response to the United States Securities and Exchange Commission’s allegations that MATIC is an unregistered security.

The digital asset was created outside of the United States and is primarily focused on the global community that supports the network. Polygon Labs has clarified that MATIC was an essential component of the Polygon technology from the beginning, ensuring that the network was and still is secure. The team behind the development and growth of the Polygon blockchain has also said that they did not intend to target the United States and ensured that MATIC would be available to a broad audience.

After the delisting of MATIC from fintech trading app Robinhood, the price of the token has dropped nearly 2% on the day and 33% over the previous week. This delisting was a result of the SEC’s classification of specific coins and tokens as securities. The SEC has explicitly referred to MATIC and 11 other tokens as securities in their lawsuit against Binance, the world’s largest cryptocurrency exchange. Along with MATIC, Binance USD, BNB, Solana’s SOL, Cardano’s ADA, Filecoin’s FIL, Cosmos Hub’s ATOM, The Sandbox’s SAND, Decentraland’s MANA, Algorand’s ALGO, Axie Infinity’s AXS, and Coti’s COTI were also labeled as securities by the regulator.

Polygon Labs’ response to the SEC’s allegations is reassuring for investors who are concerned about the regulatory landscape for cryptocurrencies. Despite the recent market volatility, Polygon Labs’ commitment to global inclusivity is a promising sign for the future of MATIC and the broader cryptocurrency market as a whole. It is essential for cryptocurrency projects to have a clear and transparent regulatory framework to ensure the trust and confidence of investors.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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