SEC Makes Another Action, Targeting OpenSea NFT Sale And Purchase Platform

The NFT OpenSea trading platform is targeted by the SEC. (Photo; Doc. TheCoinAcademy)

JAKARTA - US Regulators, Securities and Exchange Commissions aka Securities and Exchange Commission (SEC) in the United States are again taking controversial actions. This time the SEC is targeting one of the largest non-fungible token marketplaces (NFT) in the world, OpenSea.

On Wednesday, August 28, 2024, OpenSea revealed that it had received a notification letter from the SEC stating their intention to take legal action against the platform.

In a statement, OpenSea CEO Devin Finzer said that the SEC considers NFTs trading on their platform as securities, an accusation that shocked the digital creator community and technology-dependent artists. This action signifies a significant shift in the SEC's regulatory approach to the NFT market, which is still operating within the law's gray region.

OpenSea, as one of the pioneers in the NFT industry, faces a serious threat from the SEC that issued the Wells Notice to the company. This notification is the first step before the SEC's official law enforcement action.

Devin Finzer, through its social media accounts on platform X, expressed concern about the possible impact of this aggressive move. "We are shocked that the SEC is making such a broad move towards creators and artists. However, we are ready to stand up and fight back," wrote Finzer.

Nonetheless, Finzer insists that OpenSea will not give up without a fight. The company has allocated $5 million to help cover legal costs for creators and NFT developers who may also receive similar notices from the SEC. This move demonstrates OpenSea's commitment to protecting the digital creator ecosystem, which has been the backbone of NFT development.

The SEC has previously issued Wells Notice to a number of other crypto platforms, such as Uniswap, a decentralized crypto exchange, and Robinhood, a popular trading platform. With the increasingly intense action of the SEC, the crypto industry and NFT are now under tighter scrutiny, demanding industry players to continue to strengthen their legal positions amid regulatory uncertainty.

Finzer closed its statement in the hope that the SEC would reconsider their steps and listen with an open mind. Meanwhile, the international crypto community is waiting anxiously for further developments from this case, which could set an important precedent for the future of the NFT industry globally.