OpenSea CEO’s Response to SEC Notice

OpenSea CEO Devin Finzer announced that the NFT marketplace has received a Wells Notice from the SEC, indicating potential legal action over the classification of NFTs as securities.

“OpenSea has received a Wells notice from the SEC threatening to sue us because they believe NFTs on our platform are securities,” stated Finzer in a post on X. He expressed shock at what he called a sweeping move against creators and artists. Finzer emphasized that they’re prepared to fight the allegations.

He described the SEC’s focus on NFTs as a venture into uncharted territory. “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,” he explained.

Finzer urged the SEC to reconsider its stance: “I hope the SEC will come to its senses sooner rather than later, and that they’ll listen with an open mind. Until then, we’ll stand up and fight for our industry.”

In an effort to support the NFT community, Finzer announced that OpenSea will commit $5 million to cover legal fees for NFT creators and developers facing Wells Notices.

The SEC has previously suggested that NFTs can be categorized as securities, as evidenced by a recent settlement with Impact Theory regarding unregistered securities sales through NFTs.