- Last week, the SEC classified several crypto assets as securities
- Prices of ADA, SOL and MATIC plummeted following the SEC’s announcement
- ADA, SOL and MATIC saw between 3% and 5% price gain over the weekend
The prices of Cardano (ADA), Solana (SOL) and Polygon (MATIC) slowly climbed back after the executives of the blockchain firms took a stand and refuted the U.S. Securities and Exchange Commission’s (SEC) recent pronouncements that the companies’ crypto assets are securities.
Last week, when the SEC filed a lawsuit against Binance, the world’s largest crypto exchange platform by trading volume, it also deemed several crypto assets as securities, including the native tokens of blockchain firms Cardano, Solana and Polygon.
Following the lawsuit, the prices of the assets that were deemed as securities nosedived. ADA witnessed an 11% loss and was trading at $0.325; SOL was down 8% and was trading in the red zone at $19; and MATIC saw a 12% decline in its value at $0.784, according to the data from CoinMarketCap.
Following the SEC classification, Solana Foundation, in charge of overseeing the development of the Solana blockchain, said it is willing to work with regulators to bring about clarity to the industry. But it pointed out that it does not agree with the SEC’s classification of its native token as a security.
In a tweet, Solana Foundation said that it “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.”
Polygon Labs also reacted to the SEC’s move against its token and noted that MATIC was not targeted at the U.S. market, noting that its team made sure the token is available to a wide range of users while keeping its eyes fixed on the global community.
“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 secure – and remains so to this day. 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 US at any time,” Polygon tweeted.
IOG, the Cardano development company, slammed the SEC’s classification of ADA and labeled the lawsuit filed by the regulator against Binance and Coinbase as one containing “numerous factual inaccuracies.”
“Under no circumstances is ADA a security under U.S. securities laws. It never has been,” IOG said in a statement. “Understanding how decentralized blockchains operate is a fundamental component in creating responsible legislation,” it added.
ADA saw a 3.47% gain and was trading up $0.2707 with a 24-hour volume of $534 million; SOL saw a 4.13% price jump and was trading in the green zone at $15.66 with a 24-hour volume of $442 million; and MATIC saw its price jump by 5.71%. The latter was trading up at $0.6523 over the past 24 hours with a 24-hour volume of $574 million as of 3:23 p.m. ET on Sunday, according to the latest data from CoinMarketCap.