U.S. Government’s War on NFTs: SEC’s Threat to OpenSea

MetaversePlanet September 2, 2024Last Updated: September 2, 2024

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The U.S. Securities and Exchange Commission (SEC) has threatened OpenSea, the largest NFT marketplace, with sanctions. According to the statement, the SEC will also begin to consider NFTs as securities.

The SEC has recently intensified its actions against crypto assets, filing lawsuits against exchanges such as Binance, Coinbase, Kraken, and Robinhood. The agency has also held several meetings with decentralized finance companies like Uniswap. The latest news indicates that the SEC’s crackdown on crypto is far from over. Devin Finzer, CEO of OpenSea, one of the world’s largest NFT marketplaces, shared a post on X, announcing that the SEC had sent them a “Wells notice.” This is significant because receiving a Wells notice often precedes a potential sanction. Finzer stated that the notice was sent because the SEC has started to classify NFTs as securities.

“We are shocked at such a big move”

Expressing their shock at the SEC’s significant move against NFT creators and the investors who support them, OpenSea CEO Devin Finzer stated that they are prepared for anything and will fight against a potential lawsuit. Finzer also highlighted that many NFT creators lack the financial resources to defend themselves against the SEC, and such a situation could have a direct impact on the industry.

The SEC has not made an official statement on the matter. However, the news indicates that the agency is preparing to shake up the cryptocurrency industry once again. While past events suggest that this situation may eventually lead to some form of settlement, it is clear that the process will create challenges for both NFT investors and creators.