Polygon Labs Defends MATIC Against SEC’s Security Claim

Polygon Labs has issued a response to the United States Securities and Exchange Commission’s (SEC) claims that MATIC is an unregistered security.

The team defended MATIC’s status, emphasizing that it was developed and deployed outside the U.S. and focused on the global community supporting the network.

They also highlighted MATIC’s role in ensuring the security of the Polygon technology from its inception. Despite Polygon Labs’ statement, MATIC has experienced a price decline, dropping nearly 2% in a single day and over 33% in the past week.

Polygon Labs Defends MATIC’s Status

In a blog post, Polygon Labs stated that MATIC is “not a security” and that it “was not created or sold to U.S. investors.” The team also emphasized that MATIC is “used to secure the Polygon network” and that it “is not a financial instrument.”

MATIC Price Declines

The price of MATIC has declined significantly in the wake of the SEC’s claims. On June 9, MATIC’s price fell by nearly 2% to $0.304.

This decline follows the delisting of MATIC from Robinhood, a popular fintech trading app. Robinhood also removed support for other coins, including SOL from Solana and ADA from Cardano, due to the SEC’s classification of certain coins and tokens as securities.

SEC’s Lawsuit and Security Labeling

The SEC’s lawsuit against Binance, the world’s largest cryptocurrency exchange, explicitly identified MATIC as well as 11 other tokens as securities.

This labeling has caused uncertainty and regulatory concerns in the market. The SEC has also classified other tokens, including Binance USD, BNB, SOL, ADA, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI, as securities.

What Does This Mean for MATIC?

It is unclear what the long-term implications of the SEC’s claims will be for MATIC. However, the recent price decline suggests that investors are concerned about the regulatory uncertainty surrounding the cryptocurrency.

Polygon Labs has stated that it is “committed to working with regulators” and that it “believes that MATIC is not a security.” However, it remains to be seen how the SEC will respond to Polygon Labs’ arguments.