The US SEC could soon consider NFTs as securities, according to Devin Finzer, CEO of OpenSea. The non-fungible token platform has indeed received a “Wells notice” from the SEC, a warning prior to potential legal action. What do we know at this point?
NFTs in SEC’s sights? Regulator attacks OpenSea
Will non-fungible tokens (NFTs) soon be considered “securities,” a term so dear to the American SEC? Well, it looks like that could soon be a possibility, according to Devin Finzer, CEO of OpenSea, the largest platform in this market segment.
Indeed, according to a communication from it on X, OpenSea would have received a notice – the famous “Wells” notice – from the Securities and Exchange Commission on this subject.
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A ” shock ” for the platform, in the words of Devin Finzer, who expressed his surprise at a “ such a radical measure ” from the American regulator:
OpenSea has received a Wells notice from the SEC threatening to sue us because they believe NFTs on our platform are securities.
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…
— Devin Finzer (dfinzer.eth) (@dfinzer) August 28, 2024
According to OpenSea CEO, SEC Takes New Steps in Targeting Content Creators and Artists. ” Hundreds of thousands of artists and online creators are at risk, and many lack the resources to defend themselves, ” he explains. ” We should not regulate digital art the same way we regulate collateralized debt obligations. »
So, for the head of the main NFT platform, it is not just companies that are at risk from attacks by the regulator, as is usually the case, but all creators and developers who use non-fungible tokens.
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For this purpose, He promised to contribute $5 million to help cover the legal costs of the individuals involved. who would also receive a Wells notice from the SEC. In 2023, the SEC had just taken action against Impact Theory and Stoner Cats, 2 collections of NFTs accused of having violated certain securities laws.
A Wells notice indicates that the SEC is considering taking legal action against OpenSea because it may have violated securities laws. The battle is therefore not officially engaged, but the NFT platform must in any case now remain on its guard.
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