Krutika Adani
The SEC has served Wells notice to NFT exchange Opensea for securities trading violations.
The NFT exchange, which is desperately trying to regain its lost market, might find it difficult to defend itself with low funds.
The reason or logic for the raid on the NFT exchange is unclear since NFTs do not qualify even remotely as securities and have always been treated as digital art.
The security markets regulator has yet to clarify which NFTs it considers securities.
NFTs, which had been facing double-digit decline month over month in 2024, might find it difficult to recover if the SEC widens its investigation to other NFT exchanges.