- OpenSea received a Wells notice from the SEC, which claims that NFTs on its platform may be considered securities.
- OpenSea has pledged $5 million to help cover legal fees for NFT creators and developers who receive a Wells notice.
OpenSea, the world’s largest NFT marketplace, has received a Wells notice from the U.S. Securities and Exchange Commission (SEC) indicating potential legal action. The SEC claims that NFTs on OpenSea’s platform may be considered securities, a move that has shocked the company and its users.
OpenSea has received a Wells notice from the SEC threatening to sue us because they believe NFTs on our platform are securities.
— Devin Finzer (dfinzer.eth) (@dfinzer) August 28, 2024
We're shocked the SEC would make such a sweeping move against creators and artists. But we're ready to stand up and fight.
Cryptocurrencies have long…
In response, Devin Finzer, CEO and Co-founder of OpenSea, expressed his concern over the SEC's approach, stating,
“We’re shocked the SEC would make such a sweeping move against creators and artists. But we’re ready to stand up and fight.”
He emphasized that targeting NFTs could stifle innovation across the digital art space, impacting hundreds of thousands of online artists and creatives.
Finzer pointed out that cryptocurrencies have long been under scrutiny by the SEC, with companies like Coinbase, Uniswap, Robinhood, Kraken, and ConsenSys challenging the regulator’s approach of "regulation by enforcement." He believes that NFTs should not be regulated in the same way as traditional financial products, arguing,
“NFTs are fundamentally creative goods: art, collectibles, video game items, domain names, event tickets, and more.”
To support the NFT community, OpenSea has pledged $5 million to assist creators and developers who may face legal challenges due to the SEC's actions.
“Every creator, big or small, should be able to innovate without fear,” Finzer stated, urging the SEC to reconsider its stance.
Finzer concluded by affirming OpenSea’s commitment to defending the NFT industry, vowing to “stand up and fight for our industry” until the SEC reconsiders its position.
Edited by Harshajit Sarmah
Also Read:
Harshajit Sarmah
