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.

This is 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.

In addition to standing our own ground, we're pledging $5M to help cover legal fees for NFT creators and devs that receive a Wells notice. Every creator, big or small, should be able to innovate without fear.

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.

Onwards 🌊⛵️

Egregious attempt from the Gensler SEC to classify anything with a secondary market as securities.

Where does it stop — Pokémon cards? Beanie Babies? Taylor Swift tickets?

IANAL, but the definition of a security is well-defined.

However, trying to classify an entire category / go after a general purpose platform is a pretty big expansion of scope.

Are there NFT projects that fit the definition below? Probably. Are all NFTs securities? No.

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Maybe my logic doesn’t work for me this morning but how are finite material objects with a secondary market comparable to infinite virtual coins with secondary markets?

i remember yelling at a regulator maybe four or five years ago that "art, tickets, and music are not and never will be securities"

I am still HODLING those Beanie Babies… definitely NOT securities lol

That insane little dude would probably claim warps are securities 🤦‍♂️

Pokemons are obviously securities, maybe aside from Snorlax or Magicarp

Next up Gary is gonna come for me and my candles 😐

Gensler is a clown. https://blockworks.co/news/gensler-testimony-pokemon-bitcoin

the sec suing opensea and losing is good for the industry

Keep your filthy hands off my beanie babies, Gary! 😡

I would love to go to jail for owning Pokemon cards and Beanie babies. This just encourages me to put them all on chain.

IKEA peer-to-peer marketplace

https://spoo.me/ikea-peer-t

We should tokenize and trade used actual socks to test the limit.

Not a lawyer but this sort of feels a bit telegraphed by the insider-trading case last year, since it seems that only applies to securities?

Not a lawyer but this sort of feels a bit telegraphed by the insider-trading case last year, since it seems that only applies to securities?

https://www.justice.gov/usao-sdny/pr/former-employee-nft-marketplace-sentenced-prison-first-ever-digital-asset-insider

They're not going after NFT collectables (yet). They're going after the CEX.
All they need to do is find a single NFT collection that was marketed exactly as a security that's now on OS and then they'll claim OS is an illegal securities dealer. Surely it's not that hard to do.

Especially if it goes up in price. Might have to sell all your Coinbase shares to pay for all the unrealized tax gains