•The Solana Foundation is objecting to the SEC’s allegation that SOL is a security.
•Polygon Labs appears to be distancing itself from the US market after being listed as a crypto asset security by the SEC.
•The SEC has listed eleven crypto assets as securities, including SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS and COTI.
Solana Foundation Objects to SEC’s Claims
The Switzerland-based Solana (SOL) developer is objecting to the U.S. Securities and Exchange Commission’s (SEC) allegation that the 11th-largest crypto asset by market cap is a security. The Solana Foundation says that it disputes the claims made by the SEC in a lawsuit filed against crypto exchange Binance last week. “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 US building in the digital assets space.”
Polygon Distancing Itself from US Market
Besides Solana and Polygon Labs also reacting to the SEC’s latest offensive on the crypto space. Polygon Labs appears to be distancing itself from US market after being included in its list of crypto asset securities “We are proud of the history of our network – developed outside USA deployed outside USA and focused on global community that supports our network.” They said they took necessary steps not target USA at any time and there are more thoughtful work being done around globe regarding technology including regulators and policy makers.
List Of Crypto Assets Labeled As Security By The SEC
Since launching Binance platform defendants have made available for trading on them ,crypto assets offered and sold as investment contracts which are labeled as securities by The Securities And Exchange Commission . This includes but not limited to Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), BUSD ,Solana(SOL) ,Cardano(ADA) ,Polygon (MATIC) ,Filecoin(FIL) ,Cosmos(ATOM) ,The Sandbox(SAND), Decentraland(MANA), Algorand(ALGO), Axie Infinity (AXS).
Conclusion
By filing this case against Binance it has created confusion among developers who are now trying their best to distance themselves from this mess or take legal stand against these claims . Though there will be no change in how things will function but yet it will make developers think twice before entering into new markets because such cases could arise anytime anywhere with no one expecting it .
Take Away
This article highlights how both developers working for solana and polygon labs reacted when they were accused of dealing with securities when they actually weren’t . This case brings forward many important questions about legality involved while developing such digital assets which should be addressed properly so that developers don’t face any hindrance while developing blockchain based projects or cryptocurrencies .