OpenSea CEO Devin Finzer Responds to SEC Wells Notice

OpenSea CEO Devin Finzer announced that the NFT marketplace has received a Wells Notice from the SEC, indicating a potential enforcement action against the platform.

> "OpenSea has received a Wells notice from the SEC threatening to sue us because they believe NFTs on our platform are securities," Finzer stated in a post on X. "We're shocked the SEC would make such a sweeping move against creators and artists. But we're ready to stand up and fight."

Finzer emphasized that this development represents a move 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 remarked.

He argued that targeting NFTs could hinder innovation and adversely affect many digital creators involved in the NFT market.

> "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," he added.

In response to these challenges, Finzer announced that OpenSea is pledging $5 million to assist with legal fees for NFT creators and developers who receive a Wells Notice.

The SEC has previously suggested that NFTs could be classified as securities. Notably, the agency settled with Impact Theory over allegations of unregistered securities offerings through NFT sales.