SEC Latest Ruling: Cardano, Solana, and Polygon Tokens Marked as Securities

CN
1 year ago

The SEC believes that Cardano, Solana, and Polygon are potential securities in conflict with Kraken.

The teams deny the securities classification and await potential changes pending a court ruling.

Speculation abounds that the SEC may take action similar to the Ripple case, but no formal plans targeting ADA, SOL, or MATIC issuers have been announced.

The recent legal battle between the U.S. Securities and Exchange Commission (SEC) and several cryptocurrencies has brought Cardano, Solana, and Polygon into the spotlight. In a legal dispute involving Kraken, the SEC has raised concerns and labeled these tokens as potential securities.

Kraken is accused by the SEC of violating securities laws by operating an unregistered securities exchange, prompting the SEC to categorize multiple tokens, including ADA, SOL, and MATIC, as so-called securities.

This move by the SEC reflects previous claims of ADA being an unregistered security in lawsuits against major platforms such as Coinbase and Binance. Similar allegations against Solana and Polygon have also emerged in legal disputes involving these exchanges.

Despite the SEC's classification, the teams behind Cardano, Solana, and Polygon strongly deny the tokens being classified as securities. Input Output Global, leading the Cardano project, vehemently refutes the SEC's claims, emphasizing that ADA is not subject to U.S. securities laws as a security.

However, the ultimate decision rests on a potential court ruling, which could shake the SEC's position. While there are various speculations about the SEC's actions following the conclusion of the Ripple lawsuit, the regulatory agency has not announced any formal plans to charge ADA, SOL, or MATIC issuers with violating securities laws.

Nevertheless, the SEC's classification could have a significant impact on the prices of ADA, SOL, and MATIC. The imminent legal battles and the possibility of legal action against issuers may lead to increased caution among investors, potentially resulting in a temporary decrease in demand for these tokens.

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