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The NFT marketplace OpenSea has received a Wells Notice from the U.S. Securities and Exchange Commission (SEC), which asserts that non-fungible tokens (NFTs) traded on the platform might be classified as unregistered securities.
The U.S. Securities and Exchange Commission (SEC) has issued a Wells Notice to OpenSea, a platform for trading non-fungible tokens. Devin Finzer, the CEO of the marketplace, stated that the regulator alleges the platform has breached securities laws.
The SEC contends that certain NFTs traded on OpenSea may be considered unregistered securities. Following its investigation, the regulator is poised to initiate legal action against the platform.
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Finzer affirmed that the company is prepared to contest any potential penalties. He highlighted that the SEC’s actions could establish a precedent that would adversely affect the entire NFT sector, jeopardizing hundreds of thousands of artists and creators, many of whom do not have the means to defend themselves legally. Consequently, OpenSea plans to establish a dedicated fund and allocate $5 million for the legal defense of NFT creators facing challenges from the SEC.
Numerous individuals within the crypto sector have criticized the SEC’s actions. Ji Kim, General Counsel of the Crypto Council for Innovation (CCI), remarked that it is entirely unreasonable for the SEC to categorize the NFT marketplace as a securities exchange, claiming that this interpretation is legally flawed. Katherine Minarik, CLO at Uniswap Labs, also condemned the regulator’s stance, asserting that there is no legislation that defines collectibles as securities, thus NFTs cannot be classified in that manner. She further expressed disappointment that the regulator continues to squander resources intended for investor protection on unnecessary litigation.
Some U.S. officials have also voiced their opposition to the SEC’s actions. Wiley Nickel, a Congressman from North Carolina, stated that SEC Chair Gary Gensler should cease regulating through enforcement and collaborate with Congress to establish clear and equitable rules that foster innovation and safeguard jobs in the United States. Notably, Gensler has been identified by representatives of the crypto industry as a key figure behind the recent threats directed at the crypto community.
Previously, the SEC issued Wells Notices to Uniswap, Robinhood, and Paxos, and has filed lawsuits against Binance, Coinbase, Bittrex, and Kraken.
Сообщение SEC Calls NFTs Securities and Plans to Sue OpenSea появились сначала на CoinsPaid Media.
