The US Securities and Exchange Commission recently announced dropping its investigation into Ethereum 2.0. This serves as a notification that it will no longer pursue its legal course to classify Ether as a security. Consensys is committed to seeking more clarifications via a legal course, and the community expects to have a safety net for Solana and Polygon. Following the announcement of Ethereum, analysts have said that making any assumptions about both tokens is complicated.
There are two reasons for this: the SEC did not really investigate other digital assets when it was looking into Ethereum 2.0, and their facts are completely different in comparison to Ethereum. The latter pertains to the distribution and creation of SOL and MATIC. Simply put, it will take a different investigation by the agency to determine if SOL and MATIC can replicate Ether’s trend.
What triggered the investigation into Ethereum 2.0 was the beginning of the transition to the proof-of-stake mechanism. Users must pledge their digital assets to participate in network security and transaction validation. Stakers are also rewarded for this with a yield that ranges between 1% and 4% in an ideal scenario.
Advertisement
The safety net expectation for SOL and MATIC has worked for the latter, but not for Solana. Polygon’s token has increased by 3.04% in the last 24 hours, listing at $0.5909 at the time of writing this article. The trend, however, is a reflection of the decline of 5.85% and 14.64% in the last 7 days and 30 days, respectively. The dip is also evident in the 24-hour trading volume.
SOL is down by 1.11% in a single day, exchanging hands at $137.42 at the press time. It goes on to showcase a fall of 9.33% and 22.87% in the last 7 days and 30 days, applicable in the same order.
It is quite natural for the community to seek clarification on SOL, as the token is next in line for an ETF launch. Solana has been put up as one of the potential candidates to get its ETF once Ether gets a green light from the agency.
Regarding the SEC’s investigation into Ethereum 2.0, the agency initially remained committed to pursuing the case. A decision to drop the investigation came as a massive success, per Consensys; however, it is still not sufficient. The software company is now seeking more clarifications as the market prepares for the Ether ETF launch. These entail gaining clarity about legal recognition and regulatory compliance to make sure that investors and traders have all the pieces of information with them.
Advertisement
Solana and Polygon can continue to expect a safety net, but it will take a separate investigation by the SEC to determine their status. There is a possibility that both can utilize the points from the Ethereum 2.0 investigation.
