As known from:
known from Coinwireknown from Benchknown from Coinindex
  • About CryptoGmblr.com
Contains commercial content
Cryptogambling / Solana, Cardano, Polygon challenge SEC’s ‘securities’ label

Solana, Cardano, Polygon challenge SEC’s ‘securities’ label

Publish Date: 12/06/2023

Stock Photo, tags: solana, polygon securities - pbs.twimg.com

Solana, Cardano and Polygon are pushing back against the U.S. Securities and Exchange Commission’s classification of their tokens as securities.

The companies responded with varying degrees of pushback against the accusation of their tokens being offered and sold as securities on Binance’s platforms without proper registration with the SEC.

The companies’ native tokens, SOL, MATIC and ADA, are among the industry’s top 20 by market capitalization, with over 21 billion combined value, equaling about one-tenth of Ethereum’s total.

In addition to the three major tokens mentioned above, the agency also imposed the “securities” label on tokens such as Filecoin, Cosmos Hub, The Sandbox, Decentraland, Algorand, Axie Infinity and COTI.

The SEC’s lawsuit alleges that Binance and BAM Trading, the operator of Binance.US, operated as unregistered exchanges, broker-dealers and clearing agencies, depriving investors of important information about these securities.

The announcement of the SEC’s enforcement action caused a significant drop in the value of these tokens, per CoinGecko, with Solana being the most affected, losing more than six percent of its value in one hour.

Varying stances

Despite experiencing a significant decline in value over the past week, collectively losing about 30 percent of their value, the three tokens have shown resilience and are expected to make a partial recovery by Sunday, according to CoinGecko.

Cardano was the first to defend its regulatory status. Input Output Global (IOG), the blockchain research and engineering firm behind Cardano, expressed confidence that the SEC’s lawsuits would not impact its operations.

IOG welcomed a collaborative approach with regulators to foster innovation while safeguarding consumers. It emphasized the need for regulatory clarity, saying that enforcement actions alone do not provide the certainty the blockchain industry deserves.

The Solana Foundation, a Swiss-based non-profit dedicated to Solana, said it disagreed with the SEC’s characterization of Solana’s token (SOL) as a security. However, the foundation also said it is committed to working with regulators and stressed that regulatory clarity is a crucial concern for all digital asset participants building in the U.S.

Within the Solana community, discussions are underway regarding the possibility of forking the network, which could help circumvent potential repercussions from FTX’s bankruptcy and prevent a large supply of Solana tokens from flooding the market.

Polygon Labs, the entity behind the Ethereum scaling solution Polygon, meanwhile, did not explicitly deny the security classification of its token (MATIC), but it sought to distance itself from U.S. markets.

The company maintained that Polygon was developed and deployed outside the U.S., emphasizing its global community support. Polygon Labs asserted that it had conducted itself in a manner that did not specifically target U.S.-based individuals.

Delisted from Robinhood

The recent SEC actions have already led the popular trading app Robinhood to announce the discontinuation of support for the three tokens mentioned.

The delisting will take effect on June 27, but until then, investors can continue to buy, sell and hold ADA, MATIC and SOL.

“After the deadline, any ADA, MATIC, and SOL still in your Robinhood Crypto account will be sold for market value, and the proceeds will be credited to your Robinhood buying power,” the company said in a press release.

Robinhood clarified that this decision would not impact any other cryptocurrencies held on its platform. It also said that investors have the option to transfer their ADA, MATIC and SOL to another wallet or crypto firm, except for customers in Hawaii, Nevada and New York.

Top Online Casinos
Top Casinos Bonuses
Stake.us
Stake.us
Stake.us Review
4.6/5
McLuck
McLuck
McLuck Review
4.6/5
High5Casino
High5Casino
High5Casino Review
4.5/5
Sweeptastic
Sweeptastic
Sweeptastic Review
4.5/5
Wow Vegas
Wow Vegas
Wow Vegas Review
4.5/5
Stake.us
Stake.us Bonus
$55 Stake Cash + 260K Gold Coins + 5% Rakeback
T&Cs apply
4.6/5
McLuck
McLuck Bonus
7.500 Gold Coins + 2,5 Sweepstakes Coins
T&Cs apply
4.6/5
High5Casino
High5Casino Bonus
5 Sweeps Coins + 250 Game Coins + 600 Diamonds
T&Cs apply
4.5/5
Sweeptastic
Sweeptastic Bonus
Get 70,000 Lucky Coins and 44 Sweeps Coins
T&Cs apply
4.5/5
Wow Vegas
Wow Vegas Bonus
1.75M WOW Coins + 35 Free Sweepstake Coins
T&Cs apply
4.5/5
Latest News
Charles Hoskinson forecasts Altcoin season showdown: ADA vs. DOGE
Cardano (ADA) Faces Dual Meme Coin Competition where ...
Top 5 AI cryptocurrencies ready to thrive during the next bull market
New crypto ventures merge the groundbreaking capabilities of ...
Top Crypto Exchange Sites
Crypto Exchange Guide
  • Crypto Exchanges
  • Betting Exchange
Top Brands
Top Bonuses
Stake.us
Stake.us
Stake.us Review
4.6/5
McLuck
McLuck
McLuck Review
4.6/5
High5Casino
High5Casino
High5Casino Review
4.5/5
Sweeptastic
Sweeptastic
Sweeptastic Review
4.5/5
Wow Vegas
Wow Vegas
Wow Vegas Review
4.5/5
Stake.us
Stake.us Bonus
$55 Stake Cash + 260K Gold Coins + 5% Rakeback
T&Cs apply
4.6/5
McLuck
McLuck Bonus
7.500 Gold Coins + 2,5 Sweepstakes Coins
T&Cs apply
4.6/5
High5Casino
High5Casino Bonus
5 Sweeps Coins + 250 Game Coins + 600 Diamonds
T&Cs apply
4.5/5
Sweeptastic
Sweeptastic Bonus
Get 70,000 Lucky Coins and 44 Sweeps Coins
T&Cs apply
4.5/5
Wow Vegas
Wow Vegas Bonus
1.75M WOW Coins + 35 Free Sweepstake Coins
T&Cs apply
4.5/5

Players must be 21 years of age or older or reach the minimum age for gambling in their respective state and located in jurisdictions where online gambling is legal. Please play responsibly. Bet with your head, not over it. If you or someone you know has a gambling problem, and wants help, call or visit: (a) the Council on Compulsive Gambling of New Jersey at 1-800-Gambler or www.800gambler.org; or (b) Gamblers Anonymous at 855-2-CALL-GA or www.gamblersanonymous.org.

Trading financial products carries a high risk to your capital, especially trading leverage products such as CFDs. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

This site is using Cloudflare and adheres to the Google Safe Browsing Program. We adapted Google's Privacy Guidelines to keep your data safe at all times.

21+NCPGGamblers AnonymousCloudflareSSLco² neutral
Close
Players accepted in the US US Flag
Stake.us Exclusive Bonus
$55 Stake Cash + 260K Gold Coins + 5% Rakeback
Promo Code
Go to Stake.us
Visit Site
T&Cs apply, 18+
Payment Methods
Bitcoin
Litecoin
Ethereum
Dogecoin
Highlights
  • Exclusive promo code: CRYPTGAMBL
  • Play Stake Originals games for free
  • Get free Stake Cash daily just by logging in
Stake Originals
Dice
Crash
Plinko
Mines
×
Your Bonus Code:
The bonus offer of was already opened in an additional window. If not, you can open it also by clicking the following link:
Visit Site