Polygon Labs responds to SEC's claim MATIC is a security

Polygon Labs has responded to the United States Securities and Exchange Commission's claims that MATIC is an unregistered security.

After stating that the token was "developed outside the U.S., deployed outside the U.S. and focused to this day on the global community that supports the network," Polygon Labs claimed that "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."

The development and growth team for the Polygon blockchain also said its actions "did not target the U.S." while ensuring MATIC was "available to a wide group of persons."

The price of MATIC has declined nearly 2% on the day after dropping more than 33% over the past week.

The price of MATIC is down more than 33% over the past week. Source: TradingView

SEC names specific coins and tokens as securities

Polygon Lab's comments follow MATIC's delisting from fintech trading app Robinhood, which also removed support for Solana's SOL and Cardano's ADA — a result of the SEC's labeling of specific coins and tokens as securities.

In its lawsuit against Binance, the world's largest crypto exchange, the SEC explicitly called MATIC and 11 other tokens securities.

Binance USD, BNB, Solana's SOL, Cardano's ADA, Filecoin's FIL, Cosmos Hub's ATOM, The Sandbox's SAND, Decentraland's MANA, Algorand's ALGO, Axie Infinity's AXS and Coti's COTI were also labeled securities by the regulator.