Cryptocurrency market takes a hit as SEC declares Solana (SOL) and Polygon (MATIC) securities
In a shocking revelation, the SEC has categorized major altcoins Solana and Polygon as securities, leading to a downward spiral in cryptocurrency prices. SOL’s value plummeted over 8% to below $60, while MATIC dropped nearly 7% to under $0.80 following the SEC’s announcement. This classification implies that these assets will be subject to strict regulations typically imposed on traditional investment vehicles like stocks and bonds. This move could potentially hinder the future growth and adoption of Solana and Polygon if their foundations are required to comply with rigorous reporting rules.
This isn’t the first time the SEC has attempted to label Solana and Polygon as securities. In June, the regulatory body filed a lawsuit against the crypto exchange Binance, asserting that SOL, MATIC, and BNB were all securities. However, both the Solana Foundation and Polygon Labs objected to the SEC’s classification. Nevertheless, the broader implications for the cryptocurrency industry could be significant, as this could establish a precedent for the future classification of other coins and tokens.
As the prices of SOL and MATIC continue to plunge, traders may be looking for alternative altcoins with more regulatory clarity and potential for growth. Here are three leading options that crypto enthusiasts may want to explore:
Bitcoin ETF Token (BTCETF): BTCETF is designed to allow traders to speculate directly on the market impacts of a spot Bitcoin ETF being launched in the US. The token has a deflationary mechanism built-in and has been gaining significant interest, with over $1.2 million raised during its pre-sale.
Avalanche (AVAX): Avalanche is a fast blockchain that competes with Ethereum, capable of processing 4,500 transactions per second. This has led to growing institutional interest and a surge in activity, making AVAX an exciting altcoin to watch.
Blur (BLUR): Blur is an under-the-radar crypto project that could offer an intriguing alternative to SOL and MATIC. It operates a fast-growing NFT marketplace with unique features and also has a lending protocol called Blend.
As the cryptocurrency market continues to evolve, traders are advised to conduct thorough research and exercise caution. Investing in cryptocurrencies carries a risk of capital loss, and readers are strongly advised to verify information independently and consult a professional before making any decisions based on sponsored content. This article is sponsored and does not constitute financial advice.
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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