The US Securities and Exchange Commission (SEC) has stepped up its regulatory approach against cryptocurrency companies, sending a Wells notice to Immutable, a blockchain platform focused on NFTs.
With this notice, the SEC suggests that it is considering filing a lawsuit against Immutable for alleged violations of federal securities laws.
The news comes in a context where the SEC has been applying its regulatory policy against several major players in the crypto industry, such as Coinbase, Ripple, ConsenSys, OpenSea, among others.
Immutable Responds to SEC
Recently, blockchain platform Immutable reported on Wells' notice sent to it by the SEC. In response, it has responded firmly to the accusations of the US securities regulator, affirming its confidence in the legality of its assets and services.
The company has stressed that its mission is Improving digital property rights in the field of video games, an industry that generates more than $110.000 billion annually in in-game item sales. In its declarationImmutable expressed frustration with the lack of regulatory clarity in the United States and the SEC's tendency to issue Wells notices without prior constructive dialogue.
“We are disappointed to share that the SEC recently sent us a notice from Wells, which alleges non-specific securities law violations and alleged misrepresentations by the company.”, the platform stated.
Immutable argues that Wells’ SEC notice focuses on the sale and listing of the IMX token in 2021, but does not provide specific details about the allegations. Because of this, it has stressed that the regulatory and enforcement approach that the SEC has been taking is ineffective and only harms companies looking to innovate in the digital property and NFT space.
More and more companies are questioning the SEC's regulatory strategy
Immutable has criticized the way the SEC has handled regulations in the cryptocurrency sector, arguing that Its current approach has only led to a series of lawsuits that have failed to provide clarity or legal certainty. companies in the cryptocurrency sector. The platform also noted that the regulatory process by a federal agency like the SEC should be more collaborative and less punitive. It also highlighted that the lack of clear guidelines has led startups to spend millions in legal fees without getting satisfactory answers.
Immutable has not been the only platform in the sector to criticize the SEC. To date, other companies have also complained about the SEC's The agency's lack of clarity in defining what constitutes a security in the context of cryptocurrenciesFor example, the SEC has classified Ethereum as a commodity. Still, it secretly opened an investigation into ETH to determine whether the cryptocurrency complied with securities laws. This investigation was closed after the lawsuit filed by ConsenSys against the federal agency.
The SEC’s approach to companies like Ripple is also confusing, Immutable noted, also citing the lawsuit between the regulator and Grayscale that ultimately defeated the SEC in court, when the judge hearing the case deemed the agency’s refusal to approve Grayscale’s proposal to convert its Grayscale Bitcoin Trust (GBTC) into a spot ETF to be “arbitrary and capricious.”
All of these enforcement actions by the SEC have created confusion in the industry and led to increased distrust towards this important financial regulator.
Immutable defends its IMX token: It is not a security
Immutable is defending its IMX token, claiming that it should not be classified as a security by the agency. The platform argued that the token is designed to facilitate interaction within its gaming ecosystem and not to be an investment instrument.
In its response to Wells’ notice, Immutable also emphasized that the SEC’s allegations of alleged misleading representations are unfounded and based on incorrect information.
On the other hand, the platform has mentioned that the SEC’s Wells notice was issued quickly, without the usual dialogue that precedes such actions. This has led Immutable to question the regulator’s true intent and willingness to work with the cryptocurrency industry. The lack of effective communication has been a critical point in Immutable’s response, which advocates for a more constructive and less adversarial approach.
With all this, Immutable is urging the SEC to establish a clear and adequate regulatory framework for the cryptocurrency sectorHe argues that regulation must be fair and well thought out, and that real dialogue is essential to moving forward in creating a safe environment for innovation, both in the NFT space and in digital property.
Like other companies in the sector, Immutable has expressed its willingness to work with the SEC to achieve mutual understanding and regulation that benefits both businesses and consumers.
Main image from MuyFinanciero
