The Securities and Exchange Commission (SEC) has issued a Wells notice to OpenSea, the self-proclaimed “world’s largest” nonfungible token (NFT) marketplace, suggesting the regulator may soon initiate legal action against the company.
In a tweet, CEO Devin Finzer states that the SEC is alleging that NFTs on OpenSea’s platform are unregistered securities.
He further notes that cryptocurrency companies have been a target of the SEC, which has made similar claims against Binance and Coinbase.
The crypto industry has long contended that tokens are not conventional securities, despite being tradable assets that can hold value.
“The SEC spokesperson declined to confirm or deny the possibility of an investigation,” the SEC representative stated in an email to a reporter.
OpenSea’s CEO vows to “defend our industry” and has committed $5 million to cover legal expenses for NFT creators and developers who have also received a Wells notice.
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