• OpenSea founder Devin Finzer disclosed that the company received a Wells notice from the SEC. 
  • The notice states that the SEC seeks legal action against OpenSea, claiming that NFTs sold on its platform are securities.
  • Crypto community members blasted the SEC for claiming that NFTs are securities.

OpenSea revealed on Wednesday that it has been hit with a Wells notice from the Securities & Exchange Commission (SEC). The company alleged that the regulator claimed the non-fungible tokens (NFTs) on its platform are securities. The report has led to an uproar from crypto community members who have shown concerns about the SEC's crackdown approach to the crypto industry in recent months.

OpenSea joins list of crypto companies slammed with Wells notice

NFT marketplace OpenSea revealed on Wednesday that it received a Wells notice from the SEC regarding the sale of NFTs on its platform. The company's CEO, Devin Finzer, initially announced the development on the X platform, indicating that the notice came as a shock to the company.

A Wells notice is a document indicating that the SEC has completed investigating a company and intends to take enforcement action. It also allows the accused to respond to the regulator's claims before an enforcement action is taken.

Devin disclosed that the notice suggests the SEC views NFTs on its platform as securities and states the company's disposition to "stand up and fight." He buttresses that the SEC's probe into the NFT community is "a move into uncharted territory," and could affect innovations at a larger scale by putting artists in danger.

"It would be a terrible outcome if creators stopped making digital art because of regulatory saber-rattling," Devin added.

In line with their resolve to fight, OpenSea pledged to commit $5 million as legal support for NFT creators and developers who may encounter a Wells notice during the process.

Crypto community members are not silent on the issue, as many have expressed displeasure towards the SEC's claim that NFTs are securities. Some also allege that this is a political agenda from the SEC, citing that Donald Trump unveiled his NFT cards only yesterday. Other key industry voices also added their views on the SEC's action. 

Brian Quintenz, Global Head of Policy at a16z, posted:

"News of OpenSea receiving a Wells Notice shows plain and simple that the current SEC's crusade against the crypto industry continues unabated."

Nick Ducoff, Head of Institutional Growth at the Solana Foundation, also added:

"As a securities lawyer, I'm of the opinion the SEC shouldn't have sent OpenSea a Wells notice. As a stoic, I'm of the opinion OpenSea shouldn't be shocked that the SEC did."

Uniswap Labs CEO Hayden Adams further added:

"In crypto an SEC Wells notice means you're a legit company building an important product in the US. SEC are clowns taking the idiotic stance that digital art magically transforms into a security when it's put on a blockchain."

Meanwhile, OpenSea has experienced a steady decline in revenue since the NFT craze in 2021. Revenue dropped from $365 million in 2021 to approximately $171 million in Q2 of 2024, reflecting less activity from creators.

Additionally, its trading volumes hit record lows last year, dropping from $14 billion in 2021 to around $49 million in October 2023.

Open Sea's Well notice places it among other crypto companies that have recently faced legal actions from the SEC, including Kraken, Uniswap, Coinbase, Robinhood and Binance.

SEC Chair Gary Gensler has repeatedly suggested that much of the crypto industry falls under his agency's purview. However, the Commodity & Futures Trading Commission (CFTC) has argued otherwise, stating that several key cryptocurrencies are commodities.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Top 3 gainers Supra, Cosmos Hub, EOS: Supra leads recovery after Trump’s tariffs announcement

Top 3 gainers Supra, Cosmos Hub, EOS: Supra leads recovery after Trump’s tariffs announcement

Supra’s 25% surge on Friday calls attention to lesser-known cryptocurrencies as Bitcoin, Ethereum and XRP struggle. Cosmos Hub remains range-bound while bulls focus on a potential inverse head-and-shoulders pattern breakout.

More Cryptocurrencies News
Bitcoin Weekly Forecast: Tariff ‘Liberation Day’ sparks liquidation in crypto market

Bitcoin Weekly Forecast: Tariff ‘Liberation Day’ sparks liquidation in crypto market

Bitcoin price remains under selling pressure around $82,000 on Friday after failing to close above key resistance earlier this week. Donald Trump’s tariff announcement on Wednesday swept $200 billion from total crypto market capitalization and triggered a wave of liquidations.

More Bitcoin News
Can Maker break $1,450 hurdle as whales launch buying spree?

Can Maker break $1,450 hurdle as whales launch buying spree?

Maker is back above $1,300 on Friday after extending its lower leg to $1,231 the previous day. MKR’s rebound has erased the drawdown that followed United States President Donald Trump’s ‘Liberaton Day’ tariffs on Wednesday, which targeted 100 countries.

More Maker News
Gold shines in Q1 while Bitcoin stumbles

Gold shines in Q1 while Bitcoin stumbles

Gold gains nearly 20%, reaching a peak of $3,167, while Bitcoin nosedives nearly 12%, reaching a low of $76,606, in Q1 2025. In Q1, the World Gold ETF's net inflows totalled 155 tonnes, while the Bitcoin spot ETF showed a net inflow of near $1 billion.

More Bitcoin News
Bitcoin Weekly Forecast: Tariff ‘Liberation Day’ sparks liquidation in crypto market

Bitcoin Weekly Forecast: Tariff ‘Liberation Day’ sparks liquidation in crypto market

Bitcoin (BTC) price remains under selling pressure and trades near $84,000 when writing on Friday after a rejection from a key resistance level earlier this week.

Read full analysis
The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Read More

BTC

ETH

XRP