Regulator attacks NFT platform OpenSea

The US Securities and Exchange Commission has set out to crack down on several cryptocurrency platforms, though with questionable success so far.

Next on the list is nft platform OpenSea, whose CEO went on to express the team's disappointment with the regulator's move.

Devin Finzer, CEO of OpenSea, x.com/dfinzer/status/1828791832009953706″ data-wpel-link=”external” target=”_blank”>tweeted that the company he heads is the latest to receive a Wells Notice from the SEC, which indicated that non-fungible tokens available for purchase or sale on the platform could be unregistered securities.

“We are shocked that the SEC has taken such a sweeping action against creators and artists, but we are prepared to stand up and fight back. By targeting nfts, the SEC would stifle innovation on an even larger scale: hundreds of thousands of artists and creatives online are at risk, and many do not have the resources to fight back.”

He described nfts as “creative goods” — such as art, collectibles, event tickets and others — that should not fall into the same category as securities like collateralized debt obligations and some crypto assets.

Finzer mentioned a number of artists who had filed lawsuits against the agency, which he said “describes their fear that the sale of their art and music could be considered an unregistered securities offering.”

Additionally, OpenSea's CEO said his team will pledge $5 million to “help cover the legal fees of nft creators and developers who receive a Wells Notice.”

Some of the cryptocurrency companies targeted by the SEC include Ripple, Coinbase, Binance, Uniswap, Kraken, and Consensys.

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