The US Securities and Exchange Commission (SEC) has classified Polygon (MATIC) as a security, casting a pall over the popular crypto.
The SEC’s announcement came as part of a lawsuit against Kraken, accusing the exchange of violating securities laws by operating an unregistered securities exchange, broker, and clearing agency.
Polygon, formerly known as MATIC, has been reclassified as a security by regulatory authorities. This echoes similar legal battles faced by other prominent exchanges.
The announcement that Polygon has been designated as a security coincides with a significant drop in its market value. The cryptocurrency’s price has recently dropped significantly, and there are concerns that this downward trend will continue in the coming weeks.
Investors and the crypto community are keeping a close eye on the situation, as regulatory decisions can have a significant impact on the value and market status of cryptocurrencies.
