- The organizations behind Solana, Polygon, and Cardano have issued strong statements against being classified as securities by the SEC.
- The prices of the three assets have plunged 30% since the lawsuit against Coinbase though slight growth is trickling in.
- The community joins the organizations and executives to criticize the Commission’s trigger-happy stance against the market.
The Securities and Exchange Commission (SEC) launched a new aggressive action against Binance and Coinbase earlier this month, leaving the market in the red zone with panic and tumbling asset prices.
After the SEC lawsuit against Coinbase, which listed several cryptocurrencies as securities, including Solana (SOL), Polygon (MATIC), and Cardano (ADA), the organizations behind these projects are pushing back against the “securities tag.” These three assets rank highly among the other tokens listed in the lawsuit, with a combined market cap of $21 billion.
The Solana Foundation tweeted its position asserting that SOL is not a security according to the laws of the United States. The organization delved further to explain how regulatory clarity would fix the prolonged problem between the SEC and digital assets.
“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 digital assets space.”
Input Output Global, the association behind Cardano, also reiterated the same position as it claims ADA is not a security, adding that the lawsuit will not affect the operations of ADA in any way.
“This latest filing from the SEC demonstrates that we still have a long way to go. Regulation through enforcement action does not provide either the clarity or certainty to which both the blockchain industry and consumers are entitled,” IOG added.
Mark Cuban and Polygon differ from the rest
Polygon, in its statement, did not directly state that MATIC is not a security but made an attempt to distance the asset from the United States market. According to the statement, Polygon was developed and deployed in foreign jurisdictions with a global presence.
They claimed that US-based investors were not targeted, a move which observers say they plan to use to argue against the legal jurisdiction of the SEC over the asset.
“We are confident in the actions we took in the past. Given our focus on network security, we made sure MATIC was available to a wide group of persons, but only with actions that did not target the U.S. at any time,” Polygon Labs added.
Meanwhile, Mark Cuban has noted that with the present state of things, firms can’t determine what constitutes securities calling for new regulations from Congress.