Polygon has responded to the U.S. Securities and Exchange Commission’s (SEC) claim that its token is a security governed by securities laws. In its response, Polygon states that its token was developed and deployed outside the United States and never targeted the U.S. market. The SEC has named several cryptocurrencies, including Polygon, as securities in recent cases against Binance and Coinbase. SEC Chair Gary Gensler has reiterated his stance that many issues in the crypto markets stem from non-compliance, and most crypto tokens meet the investment contract test. Gensler advises crypto intermediaries to segregate customer funds to protect investors. The SEC’s next steps against the identified crypto tokens are yet to be seen, while some of them are experiencing high volatility.

AI Sentiment: Neutral