SEC and new “securities”: A trio of popular cryptos resist

Usually, when the SEC classifies any token as a “security,” it is followed by sanctions for fraud or illegal sale of an “unregistered security.” And to make matters worse, the digital asset witnesses a plunge in its price. Three famous crypto projects, Solana, Cardano, and Polygon, recently concerned about the actions of the SEC, are taking a stand to avoid the worst.

Solana, Polygon, and Cardano stand up against the SEC

After going after Binance and Coinbase, the SEC has revised its list of “securities”. At least 55 cryptocurrencies have been assigned this status last week.

According to Decrypt, Solana has been joined by Polygon and Cardano in their rebellion against the SEC. These three crypto-assets, let’s recall, are in the top 20 assets in terms of market capitalization. And the trio’s combined market cap amounts to $21 billion.

Cardano (ADA) categorically refuses

IOHK is one of the early issuers of cryptocurrencies to reject the new classification by the U.S SEC. Charles Hoskinson couldn’t help but express his outrage on Twitter on June 5th.

“Under no circumstances is ADA a security under U.S. securities laws,” can also be read on the Input Output HK blog.

Hesitation at Solana (SOL)

“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 digital assets space. The Solana builder community is the strongest in the industry, and continues to build exceptional projects and products. The Solana Foundation remains committed to those building for the long-haul to continue to create the best blockchain for a decentralized future.”

In this message, Solana denies the status attributed by the SEC without explicitly stating its true conviction. Could it be afraid to confront Gary Gensler and his team in court? Ripple did it, though, and resisted for a long time, trying to protect XRP.

Polygon (MATIC) bending

Of the three crypto projects mentioned above, only Polygon has chosen not to challenge the SEC. Instead of complaining, its leaders have chosen to emphasize that the company was developed outside the United States and deployed for a “global community that supports the network.”

“We are confident in the measures we have taken in the past. Given the importance we attach to network security, we have ensured that MATIC was accessible to a wide group of people, but only through actions that never targeted the United States,” we read on Twitter.

Is this the announcement of a definitive extraction from the US market?

In any case, the SEC’s initiative to classify ADA, SOL, and MATIC as “unregistered securities” has greatly disrupted the status quo. Even Robinhood took the trouble to delist them due to the “cloud of uncertainty.”