Media Coverage
Source: Blockworks
Media Coverage
Press Contacts: Erik Cummins, Matt Hyams, Taina Rosa, Olivia Thomas
09.03.24
Despite continuing uncertainty regarding whether non-fungible tokens (NFTs) are considered securities, the Securities & Exchange Commission (SEC) recently concluded an investigation into NFT marketplace OpenSea. Following OpenSea’s recent receipt of a Wells notice, many commentators believe that the SEC may bring an enforcement action.
The SEC also previously charged two other NFT market participants—Impact Theory and Stoner Cats—with violating the securities laws in connection with their NFT projects. Corporate Investigations & White Collar Defense partner David Oliwenstein expects those settlements to play a role in the SEC’s looming fight against OpenSea.
“It is likely that the SEC will rely on the Impact Theory and Stoner Cats matters to bolster their argument that—depending on how the Howey analysis applies to a particular asset—NFTs may constitute ‘investment contracts’ under the federal securities laws,” Oliwenstein said. “It will certainly use those enforcement actions to counter any argument by OpenSea that the exchange lacked ‘fair notice’ that the SEC views NFTs as securities.”
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