The post SEC Issues Wells Notice to OpenSea, Alleging NFTs Are Securities appeared on BitcoinEthereumNews.com.

TLDR: OpenSea received a Wells notice from the SEC alleging NFTs on its platform are securities CEO Devin Finzer says OpenSea will “stand up and fight” against the SEC’s claims The notice comes amid broader SEC crackdown on crypto companies OpenSea pledges $5 million to help cover legal fees for NFT creators receiving Wells notices Former President Trump launched a new NFT collection the day before the OpenSea news The U.S. Securities and Exchange Commission (SEC) has taken aim at another major player in the cryptocurrency space, issuing a Wells notice to NFT marketplace OpenSea. The notice, typically a precursor to formal charges, alleges that non-fungible tokens (NFTs) sold on OpenSea’s platform are securities. OpenSea CEO Devin Finzer announced the development in a post on X (formerly Twitter) on Wednesday, expressing shock at the SEC’s move and vowing to “stand up and fight” against the regulator’s claims. Finzer argued that classifying NFTs as securities would “misinterpret the law” and potentially harm hundreds of thousands of online artists and creators. 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 The Wells notice to OpenSea is part of a broader crackdown by the SEC on the cryptocurrency industry. In recent months, the regulator has targeted several prominent crypto companies, including Coinbase, Binance, and Kraken, with legal actions or investigations. The SEC’s aggressive stance has led some crypto businesses to consider leaving the United States due to regulatory uncertainty. OpenSea, once the largest NFT marketplace during the crypto bull market, has faced challenges in recent times. The…

---

Filed under: News - @ August 29, 2024 9:19 am