The U.S. Securities and Exchange Commission (SEC) has sent a notice from Wells to non-fungible token (NFT) marketplace OpenSea, the company’s CEO said.
Devin Finzer says in a new post on the social media platform
A Wells notice is a warning from the SEC that it intends to take legal action against a company, and is not an indication of wrongdoing.
Says Finzer,
“OpenSea has received a notice from Wells from the SEC threatening to sue us because they believe NFTs on our platform are securities. We are shocked that the SEC would take such drastic action against creators and artists. But we are ready to stand up and fight.
Cryptocurrencies have long been in the SEC’s crosshairs, and companies like Coinbase, Uniswap, Robinhood, Kraken, and Consensys have fought against the SEC’s one-sided approach of “regulation by enforcement.”
But this is a step into uncharted territory. By targeting NFTs, the SEC would stifle innovation on an even broader scale: hundreds of thousands of online artists and creatives are at risk, and many lack the means to defend themselves.”
Finzer promises that OpenSea will defend itself against the SEC and release $5 million to cover the legal fees of NFT artists who may also receive a similar notice from Wells.
“In addition to staying on our own two feet, we are pledging $5 million to help cover legal costs for NFT creators and developers who receive notice from Wells. Every maker, large or small, should be able to innovate without fear. I hope that sooner or later the SEC will come to its senses, and that they will listen with an open mind. Until then, we will stand up and fight for our industry.”
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