Polygon Labs, the development and growth team behind the Polygon blockchain, has issued a response to the United States Securities and Exchange Commission’s (SEC) claims that MATIC is an unregistered security.

In a statement, Polygon Labs emphasized that MATIC was developed and deployed outside of the United States, with a focus on the global community supporting the network. The team highlighted MATIC’s integral role in ensuring network security since its inception.

However, these remarks come in the wake of MATIC’s delisting from popular trading app Robinhood, which removed support for several coins and tokens labeled as securities by the SEC. As a result, MATIC’s price has experienced a decline, adding to the recent downward trend.

Polygon Labs firmly asserted that MATIC was an essential component of the Polygon technology from its early days, emphasizing its ongoing commitment to network security.

The team clarified that their actions were not specifically targeted at the United States, aiming to make MATIC widely accessible to a diverse group of individuals globally.

Following the SEC’s labeling of certain coins and tokens as securities, MATIC, along with Solana’s SOL and Cardano’s ADA, faced delisting from the Robinhood trading app.

The consequences of this regulatory action have had a direct impact on MATIC’s price, which has declined by nearly 2% in a single day and experienced a significant drop of over 33% throughout the past week.

The SEC’s lawsuit against Binance, the world’s largest cryptocurrency exchange, explicitly identified MATIC and 11 other tokens as securities.

Alongside MATIC, the SEC labeled Binance USD, BNB, SOL, ADA, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI as securities. This regulatory action has led to increased scrutiny and challenges for these tokens within the cryptocurrency market.