Blockchain Projects Solana and Polygon Denies U.S SEC Securities Claim

Blockchain projects Solana and Polygon have publicly rejected the “securities” classification of their respective native tokens by the United States Securities and Exchange Commission (SEC). Both Solana (SOL) and Polygon (MATIC) were earmarked as securities by the regulator in ongoing lawsuits against Binance and Coinbase.

However, the Solana Foundation, which oversees the development of open-source blockchain, said in a weekend update that it disagrees with claims by the SEC that its native token, SOL, is a security. The Foundation added that although it is and will continue to encourage continued engagement with policymakers, it would not accept branding its assets incorrectly.

“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 US building in the digital assets space,” Solana Foundation tweeted.

Polygon’s Response to SEC Claims

In the same vein, Polygon Labs tweeted in reply to the SEC’s claims that MATIC is a commodity. The blockchain noted that it built, developed, and grew its network outside the United States. Furthermore, Polygon stated that, although it aims to promote MATIC on a global scale, its actions have not targeted the US at any time.

“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,” Polygon stated.

Polygon shaded the US regulator, noting that the non-US market is the largest in the world and has better policymaking capacity than the United States. The network also hinted at a new technology launch next week.

Absolute Market Capitulation

Following the SEC’s securities call-out for MATIC and SOL, their prices capitulated, leading to what was a wider market downside. SOL was down more than 25% and MATIC more than 33% from the past week. The tokens saw a greater percentage of their losses after the announcement by the SEC on Monday.