The regulator goes after the NFT Platform OpenSea
The company's CEO said the group was ‘shocked' by the SEC's action.
The US Securities and Exchange Commission has made it its mission to target various cryptocurrency platforms, albeit with questionable success so far.
Next on the list is the NFT platform OpenSea, whose CEO went to X to express the group's dissatisfaction with the regulator's actions.
OpenSea CEO Devin Finzer tweeted that the company he runs is the latest to receive a Wells notice from the SEC, which indicates that tokens that cannot be bought or sold on the platform may be unregistered securities.
“We're appalled that the SEC has taken such a big step against creators and artists. But we're ready to stand up and fight back. By targeting NFTs, the SEC undermines creativity on a larger scale: hundreds of thousands of online artists and creators are at risk, and many lack the resources to protect themselves.”
He described NFTs as “creative goods” such as art, collectibles, event tickets and others, which should not fall into the same category as securities such as collateralized debt obligations and some crypto assets.
Finzer lists a handful of artists who have filed lawsuits against the agency, citing fears that, he says, “sales of their art and music could be viewed as unregistered collateral.”
In addition, OpenSea's CEO said his team would “pledge $5 million to cover legal fees for NFT creators and Davis who receive Wells' announcement.”
Some of the crypto companies targeted by the SEC include Ripple, Coinbase, Binance, Uniswap, Kraken and Consensys.
You may also like:
Secret Affiliate Bonus for CryptoPotato Readers: Use this link to sign up and unlock $1,500 in BingX Exchange Rewards (limited time offer).
