The Digital Chamber (TDC) unequivocally condemns the SEC’s latest overreach in issuing a Wells notice to OpenSea. The notice, which alleges that NFTs listed and sold on the platform are securities, represents a significant and troubling expansion of the SEC’s enforcement actions into the digital economy.
TDC has consistently advocated that certain NFTs, particularly those representing consumer products, are not securities nor financial products and should be outside of the SEC’s jurisdiction.[1]
The SEC’s current approach of regulating by enforcement, as evidenced by this Wells Notice, threatens to stifle innovation, disrupt vibrant markets, and undermine the economic opportunities that NFTs provide to creators and entrepreneurs.
We strongly urge the SEC to reconsider this enforcement-driven strategy and instead work collaboratively with Congress to develop clear and fair regulations that support innovation while protecting consumers. It is essential that regulatory efforts foster the growth of emerging technologies and creative industries rather than hinder them.
TDC remains committed to advocating for a regulatory environment that encourages innovation and secures the future of the digital economy without compromising investor protections. For more information on our efforts and the NFT Working Group visit here.
[1] Read our response to Commissioner Peirce and Uyeda following their dissent in the Stoner Cats case here.