Solana & Polygon Affected by SEC’s Ruling on Kraken Suit
As the SEC declared certain major altcoins like Solana and Polygon to be securities during the filings related to its lawsuit against Kraken, crypto prices took a nosedive. SOL’s price fell over 8%, dropping below $60, while MATIC also went down by nearly 7% to under $0.80. This unexpected classification essentially means that the SEC intends to impose strict regulations typically reserved for stocks and bonds on these assets, potentially constricting their future development and adoption if compliance with stringent reporting rules is required.
This isn’t the first time the SEC has labeled Solana and Polygon as securities. In a previous lawsuit filed against crypto exchange Binance in June, the SEC claimed that SOL, MATIC, and BNB were securities. Despite the SEC’s characterization, both the Solana Foundation and Polygon Labs disagreed. Nonetheless, this classification has profound implications for the broader crypto industry, setting a significant precedent for how other coins and tokens could be classified in the future.
Alternative Altcoins to Consider Amidst the Turmoil
If you’re looking for alternative altcoins amidst the turmoil, there are three leading options to consider:
1. Bitcoin ETF Token (BTCETF)
Bitcoin ETF Token (BTCETF) allows traders to speculate directly on the market impacts of a potential spot Bitcoin ETF being launched in the US. The token features a deflationary mechanism with 5% of the initial supply to be burned upon key ETF approval milestones being reached. There is also a built-in sell tax that decreases based on the achievement of real-world ETF milestones. Investors have shown strong interest in the project, ranking it first on CoinSniper.net and contributing over $1.2 million during the presale.
2. Avalanche (AVAX)
Avalanche (AVAX) is an extremely fast blockchain that competes with Ethereum and has the ability to process 4,500 transactions per second. Recently, JPMorgan tested tokenized portfolios on Avalanche and other chains, indicating growing institutional interest as the network’s activity has surged. With its price up over 140% since last month, positive fundamental and technical factors have aligned, making AVAX an exciting altcoin to watch.
3. Blur (BLUR)
Blur (BLUR) is an under-the-radar project offering a unique NFT marketplace and lending protocol for professional traders. Despite the broader NFT hype decline, consistent transaction volume data and recent positive price action have made BLUR an intriguing alternative to SOL and MATIC, especially due to its early stage of adoption.
Hot Take: Weighing Your Options Amid the SEC’s Declaration
While Solana and Polygon face uncertainty due to the SEC’s classification, there are alternative altcoins to consider. Bitcoin ETF Token (BTCETF) directly targets the potential impact of a spot Bitcoin ETF in the US, while Avalanche (AVAX) offers a fast blockchain and interoperability advantages. Blur (BLUR) presents unique use cases in its early stage of adoption. As the situation evolves, considering these alternatives may help hedge against the potential repercussions of the SEC’s ruling.
Owen Patter is a distinguished crypto analyst, accomplished researcher, and skilled editor, leaving a notable imprint on the cryptocurrency landscape. As a proficient crypto analyst and researcher, Owen delves into the intricate realms of digital assets, offering insights that resonate with a diverse audience. His analytical acuity is harmoniously paired with adept editorial skills, allowing him to transform complex crypto information into easily comprehensible content.