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OpenSea said in a blog post on Aug. 28 that the SEC\u2019s Wells Notice indicates the regulator \u2013 widely criticised for is regulation by enforcement action in the crypto space, is considering a lawsuit against the NFT platform.<\/span><\/p>\n
The SEC\u2019s lawsuit against OpenSea will join a host of others, including against Uniswap, Robinhood and the crypto exchanges Kraken, Binance and Coinbase. SEC also charged Abra this week for its Earn program.<\/span><\/p>\n
While the SEC has in recent months ramped regulatory crackdown on cryptocurrencies, OpenSea says the potential lawsuit against it over allegations of \u201ccollectibles, digital art, game items\u201d being securities is a new low.<\/span><\/p>\n
\u201cBy targeting NFTs, the SEC is diving into new, uncharted waters, with potentially harmful consequences for consumers, creators, and entrepreneurs alike,\u201d OpenSea wrote in a blog post.<\/span><\/p>\n
Devin Finzer, the co-founder and CEO of OpenSea, shared a similar reaction via X. According to Finzer, the SEC\u2019s move is shocking. However, the platform is prepared to \u201cstand up and fight.\u201d<\/span><\/p>\n
\nOpenSea has received a Wells notice from the SEC threatening to sue us because they believe NFTs on our platform are securities.<\/p>\n
We're shocked the SEC would make such a sweeping move against creators and artists. But we're ready to stand up and fight.<\/p>\n
Cryptocurrencies have long\u2026<\/p>\n
\u2014 Devin Finzer (dfinzer.eth) (@dfinzer) August 28, 2024<\/p>\n<\/blockquote>\n
OpenSea also asserts that non-fungible tokens are fundamentally creative goods. As digital art or collectibles cannot be regulated in the same way as collateralized debt obligations.<\/span><\/p>\n
\u201cIn addition to standing our own ground, we\u2019re pledging $5M to help cover legal fees for NFT creators and devs that receive a Wells notice. Every creator, big or small, should be able to innovate without fear,\u201d Finzer said.<\/span><\/p>\n