Crypto Leaders Slam SEC And Gary Gensler For Targeting NFT Marketplace OpenSea With Wells Notice

Several leaders in the crypto space are criticizing the US Securities and Exchange Commission (SEC) and its Chair Gary Gensler for issuing non-fungible token (NFT) marketplace OpenSea with a Wells Notice.

OpenSea’s CEO Devin Finzer shared in an Aug. 28 X post that the regulator warned the company of a potential enforcement action. It remains unclear whether the SEC will actually pursue legal action against OpenSea. 

This is one of the few times the agency has considered labeling an NFT as an unregistered security.

SEC Criticized For Its Ongoing Attack Against The Crypto Space

Shortly after Finzer posted about the Notice on X, several industry leaders criticized the SEC for its continued attack against companies operating in the crypto space. The chief legal and policy officer at the Crypto Council for Innovation (CCI), Ji Kim, called the SEC’s assertion that NFT platforms should be considered securities exchanges “legally flawed” and “utterly ridiculous.”

News of @Opensea receiving a Wells Notice shows plain and simple that the current SEC’s crusade against the crypto industry continues unabated. This is in contrast to what Vice President Harris said two weeks ago announcing her economic agenda: pic.twitter.com/cafsHJ6DhU

— Brian Quintenz (@BrianQuintenz) August 28, 2024

The global head of policy at a16z, Brian Quintenz, said that the SEC’s Wells Notice “shows plain and simple that the current SEC’s crusade against the crypto industry continues unabated.”  

Similarly, Rep. Wiley Nickel said in an Aug. 28 X post that the SEC’s “aggressive” regulation by enforcement is “a blatant abuse of power that erodes trust and transparency” in the US regulatory system.

OpenSea CEO Is Ready To Fight The SEC

OpenSea’s CEO has pledged to “stand up and fight” any charges if the SEC decides to pursue legal action against the NFT platform. He added that up to $5 million will be provided to cover any legal fees for NFT creators and developers that are in a similar predicament.

“We’re shocked the SEC would make such a sweeping move against creators and artists. But we’re ready to stand up and fight,” Finzer said.

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