OpenSeа NFT Marketplace Receives Wells Notice from SEC
Devin Finzer, CEO and co-founder of OpenSea, revealed on the social media platform X that the U.S. Securities and Exchange Commission (SEC) has issued a Wells Notice to the NFT marketplace, signaling that the SEC may pursue legal action against OpenSea.
Devin Finzer, CEO and co-founder of OpenSea, revealed on the social media platform X that the U.S. Securities and Exchange Commission (SEC) has issued a Wells Notice to the NFT marketplace, signaling that the SEC may pursue legal action against OpenSea.
In his post, Finzer indicated that the SEC seems to classify NFTs on the platform as securities. OpenSea’s blog emphasizes that such a classification would not only result in a misinterpretation of the law but also jeopardize the livelihoods of artists.
We’re confident that OpenSea operates legally and that our users aren’t trading securities when they buy or sell NFTs using our platform,
reads the OpenSea blog.
Additionally, OpenSea has pledged $5 million to cover legal expenses for NFT creators and developers who receive a Wells Notice.
Every creator, big or small, should be able to innovate without fear.
I hope the SEC will come to its senses sooner rather than later, and that they'll listen with an open mind. Until then, we'll stand up and fight for our industry,
Devin Finzer wrote.
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