Polygon Labs Responds to SEC’s Security Classification of MATIC

Polygon Labs Responds to SEC’s Security Classification of MATIC

Polygon Labs has issued a response to the United States Securities and Exchange Commission‘s (SEC) assertion that MATIC, the native token of the Polygon blockchain, is an unregistered security. Polygon Labs refutes the claim and emphasizes that their efforts to make MATIC widely available were not specifically targeting the United States.

According to Polygon Labs, MATIC was developed and deployed outside of the United States, with a strong focus on the global community that supports the Polygon network. They assert that MATIC has been an essential and integral part of the Polygon technology since its inception, playing a crucial role in ensuring the network’s security.

Furthermore, Polygon Labs clarifies that while ensuring the availability of MATIC to a diverse group of individuals, their actions were not specifically aimed at the United States.

Following the SEC’s classification of specific coins and tokens as securities, MATIC, along with Solana’s SOL and Cardano’s ADA, was delisted from the fintech trading app Robinhood. As a result, the price of MATIC has experienced a decline of nearly 2% in a single day, with a significant drop of over 33% over the past week.

In the SEC’s lawsuit against Binance, the world’s largest cryptocurrency exchange, MATIC, along with 11 other tokens, was explicitly labeled as securities. The regulator also classified Binance USD, BNB, 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 as securities.