Devin Finzer, CEO of OpenSea, reported that the company received a Wells notice from the United States Securities and Exchange Commission (SEC), suggesting potential enforcement actions.
Notice from SEC
In an Aug. 28 post, Finzer stated that the SEC had issued the Wells notice, alleging that the NFTs traded on the marketplace might qualify as unregistered securities.
Statement from OpenSea's CEO
Finzer noted that the platform was ready to stand up and fight any potential enforcement actions. He added: "This is a move into uncharted territory. By targeting NFTs, the SEC would stifle innovation on an even broader scale: hundreds of thousands of online artists and creatives are at risk, and many do not have the resources to defend themselves."
Context and Background
The SEC has issued several Wells notices to crypto and blockchain firms to warn of potential enforcement actions related to alleged securities violations. In March 2023, the regulator targeted crypto exchange Coinbase for allegedly offering digital assets that could be classified as unregistered securities. Similar warnings were also issued to Binance, Uniswap, and Robinhood.
This is a developing story, and further information will be added as it becomes available.
Comments