The Wells Notice to Opensea underscores SEC Gary Gensler’s approach of regulation by enforcement, continuing his trend of targeting high-profile innovators rather than creating a regulatory framework that genuinely protects investors and consumers. What’s at risk? NFTs represent a breakthrough in digital market design, enabling the differentiation of digital originals from copies. Where markets were once nonexistent or flawed, an efficient one can now emerge. Creators are no longer forced to bundle content into subscriptions or offer it free on social media, hoping to monetize later. Yet, under the current regulatory environment, much of this potential is stifled by the threat of NFTs being labeled as securities. Ironically, creators seeking to build lasting value are most at risk, while bad actors chasing quick gains are favored.

The Wells Notice to Opensea underscores SEC Gary Gensler’s approach of regulation by enforcement, continuing his trend of targeting high-profile innovators rather than creating a regulatory framework that genuinely protects investors and consumers. What’s at risk? NFTs represent a breakthrough in digital market design, enabling the differentiation of digital originals from copies. Where markets were once nonexistent or flawed, an efficient one can now emerge. Creators are no longer forced to bundle content into subscriptions or offer it free on social media, hoping to monetize later. Yet, under the current regulatory environment, much of this potential is stifled by the threat of NFTs being labeled as securities. Ironically, creators seeking to build lasting value are most at risk, while bad actors chasing quick gains are favored. https://www.forbes.com/sites/digital-assets/2024/08/29/how-the-secs-attack-on-nfts-harms-creators/