OpenSea CEO vows to fight SEC’s NFT crackdown with $5 million defense fund
Summary
OpenSea received a Wells Notice from the SEC, indicating that the regulator views the NFTs on its platform as securities. CEO Devin Finzer expressed surprise at the SEC's broad action against creators and artists, warning that it could stifle innovation and jeopardize the livelihoods of many online creators. OpenSea is pledging $5 million to assist NFT creators facing legal challenges from the SEC. Finzer argued that NFTs are creative products and should not be regulated like financial instruments. The Wells Notice represents a regulatory crackdown on digital assets in the US and is the first directed at an NFT company, potentially setting a precedent for how NFTs are treated under US securities law.
