OpenSea CEO says NFT marketplace received Wells Notice and pledges $5 million to help defend creators against SEC

OpenSea CEO Devin Finzer said the NFT marketplace has been given a Wells Notice by the SEC, a sign that the agency may be about to file an enforcement action against it.

"OpenSea has received a Wells notice from the SEC threatening to sue us because they believe NFTs on our platform are securities," said Finzer in a post on X. "We're shocked the SEC would make such a sweeping move against creators and artists. But we're ready to stand up and fight."

Finzer said this was 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," he said.

Finzer argued that the SEC targeting NFTs would stifle innovation and hurt hundreds of thousands of digital creators who have made and sold NFTs.

"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," he added.

Finzer added the company is pledging $5 million to help cover legal fees for NFT creators and developers who receive a Wells Notice.

The SEC has previously implied that NFTs can be involved in securities sales. The agency settled with Impact Theory over allegations that it had engaged in an unregistered offering of securities through its sales of NFTs.