OpenSea Gets a Wells Notice from US SEC

The US Securities and Exchange Commission (SEC) has expanded its regulatory efforts in the cryptocurrency industry by issuing a Wells notice to NFT marketplace OpenSea.

This step suggests that the SEC may be considering taking legal action against the platform for allegedly trading in unregistered securities. In a statement posted on Wednesday, CEO of OpenSea Devin Finzer confirmed that the platform had received a Wells notice.

This notice means that the SEC is investigating whether the NFTs being traded on OpenSea should be classified as securities, which could potentially result in enforcement action.

“We were caught off guard by the SEC’s broad move against creators and artists,” Finzer stated. “But we are prepared to stand up and defend ourselves.”

He also expressed concern that labeling NFTs as securities could hinder creativity in the digital art world, impacting many artists and creators who may not have the means to challenge the SEC’s allegations.