U.S. Securities and Exchange Commission building in Washington, D.C. (Photo: Diego M. Radzinschi/ALM) 'Any NFT Is a Security': What an SEC Wells Notice Sent to OpenSea Could Mean for Attorneys
"The risk has been in the back of people's minds, but it has not been the same type of issue as creating a cryptocurrency," said Cameron Pick, a partner at Marshall, Gerstein & Borun.
August 28, 2024 at 02:55 PM
4 minute read
The original version of this story was published on National Law Journal
What You Need to Know
- The CEO for OpenSea revealed that the company received a Wells notice from the U.S. Securities and Exchange Commission.
- Experts commented on the implications of the potential regulatory action.
The chief executive officer of the largest nonfungible token marketplace revealed Wednesday that the U.S. Securities and Exchange Commission sent it a Wells notice over allegations that the digital assets the marketplace sells are unregistered securities.
"We're shocked the SEC would make such a sweeping move against creators and artists," Devin Finzer, the CEO of OpenSea, said on X. "By targeting NFTs, the SEC would stifle innovation on an even broader scale: hundreds of thousands of online artists and creatives are at risk, and many do not have the resources to defend themselves."
Cameron Pick of Marshall, Gerstein & Borun. (Courtesy photo) NOT FOR REPRINT
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