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<p class="is-style-lead">The Solana Foundation and Polygon Labs are among the latest entities to push back against the U.S. Securities and Exchange Commission&#8217;s (SEC) classification of their respective tokens as securities.</p>



<h2 class="wp-block-heading" id="solana-foundation-and-polygon-labs-push-back-against-the-sec">Solana Foundation and Polygon Labs push back against the SEC</h2>



<p>Both organizations have expressed their disagreement with the regulatory body&#8217;s assessment, emphasizing their commitment to operating outside the scope of U.S. markets.</p>



<p>The Solana Foundation, which oversees the development of the Solana blockchain, expressed its willingness to cooperate with regulators to bring clarity to the emerging industry.</p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">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 U.S. building in the…</p>&mdash; Solana Foundation (@SolanaFndn) <a href="https://twitter.com/SolanaFndn/status/1667578529612017666?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">June 10, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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<p>Despite its disagreement with the SEC&#8217;s <a href="https://fortune.com/crypto/2023/06/05/solana-polygon-cardano-bnb-cryptocurrencies-labe-securities-sec-binance/" target="_blank" rel="noreferrer noopener">classification</a> of SOL, the native cryptocurrency of the Solana network, as a security, the foundation welcomed engagement with policymakers to achieve legal clarity for entrepreneurs operating in the digital asset space.</p>



<p>The SEC has filed <a href="https://crypto.news/sec-sues-coinbase-just-hours-after-binance/" target="_blank" rel="noreferrer noopener">lawsuits</a> against Binance and Coinbase, accusing the exchanges of facilitating the trading of unregistered crypto asset securities, including solana (SOL) and polygon (MATIC).</p>



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<iframe loading="lazy" title="SEC sues crypto exchange Coinbase in New York federal court" width="1020" height="574" src="https://www.youtube.com/embed/Q8fWRB4HU54?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>
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<p>However, according to the Solana Foundation, SOL&#8217;s use within the network makes it more akin to a utility token than a security.</p>




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<h2 class="wp-block-heading" id="strong-matic-not-targeted-at-the-us-market-strong"><strong>MATIC not targeted at the US market</strong></h2>



<p>Similarly, Polygon Labs clarified that their token, MATIC, was not targeted at the U.S. market. </p>



<p>Polygon asserted that its development team has ensured that MATIC is available to a broad group of users while maintaining its focus on the global community.</p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">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. MATIC was a necessary part of the Polygon technology from Day 1, ensuring that the network would be…</p>&mdash; Polygon (Labs) (@0xPolygonLabs) <a href="https://twitter.com/0xPolygonLabs/status/1667643925232852996?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">June 10, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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<p>Interestingly, the SEC&#8217;s lawsuits also identified several other tokens, including cardano (<a href="https://crypto.news/cardano-developer-iog-insists-ada-is-not-a-security-token-down-36-in-5-days/">ADA</a>), Sandbox (SAND), filecoin (FIL), and Axie Infinity (AXS), as securities.</p>



<p>Among the tokens labeled as securities, MATIC experienced an 8% increase in the past 24 hours, reaching $0.6273 at the time of writing, according to<a href="https://www.coingecko.com/en/coins/polygon" target="_blank" rel="noopener"> CoinGecko</a> data.</p>



<p>SOL experienced a 5.7% rally in the past 24 hours, reaching $15.58, with a trading volume of more than $733 million. However, the token&#8217;s price has faced downward pressure, declining by over 20% in the past seven days following its <a href="https://mashable.com/article/binance-robinhood-crypto-com-cryptocurrency-sec-fallout" target="_blank" rel="noopener">delisting</a> from Robinhood and subsequent whale <a href="https://crypto.news/crypto-trading-firm-moves-9-8m-of-polygon-tokens-to-coinbase-binance-matic-price-tanking/">sell-offs</a>.</p>



<p>The outcome of the SEC’s lawsuits will undoubtedly have far-reaching implications for the crypto industry, especially concerning the regulatory classification of tokens.</p>




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        <a href="https://crypto.news/how-sec-chair-gary-gensler-moved-from-crypto-advisor-to-antagonist/">
            How SEC chair Gary Gensler moved from crypto advisor to antagonist        </a>
    </p>

Solana, Polygon challenge US SEC’s classification of SOL and MATIC as securities

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