OpenSea CEO Devin Finzer announced that the NFT marketplace has received a Wells Notice from the U.S. Securities and Exchange Commission (SEC), indicating that the agency may soon file an enforcement action against the company. The SEC’s move suggests that it views NFTs on the OpenSea platform as securities.
In a post on X (formerly Twitter), Finzer expressed his shock at the SEC’s broad action, stating, “OpenSea has received a Wells notice from the SEC threatening to sue us because they believe NFTs on our platform are securities. 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 the SEC’s actions could set a dangerous precedent, potentially stifling innovation and harming the livelihoods of hundreds of thousands of digital creators who rely on NFTs to share and sell their work. “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 said.
The OpenSea CEO urged the SEC to reconsider its stance, hoping that the agency would approach the situation with an open mind. In the meantime, Finzer pledged that OpenSea would not back down, vowing to fight for the NFT industry and its creators. To support this commitment, OpenSea is pledging $5 million to help cover legal fees for NFT creators and developers who also receive Wells Notices.
This isn’t the first time the SEC has signaled its interest in regulating NFTs. The agency previously settled with Impact Theory over allegations that it engaged in an unregistered offering of securities through its NFT sales. Finzer’s announcement highlights the growing tension between the SEC and the rapidly evolving NFT space, as creators and platforms alike grapple with the implications of potential regulatory oversight.
