SEC's Wells notice for OpenSea

Looks like Gary's at it again with his enforcement tactics lol. So, OpenSea got hit with a Wells notice saying the SEC might take action against them, claiming they’re dealing with illegal securities. Honestly, Gary Gensler really needs to pay attention to the judge who ruled on XRP, because tokens themselves aren’t illegal securities. This is gonna be another similar argument. The NFTs traded on OpenSea’s secondary market aren’t securities by themselves. OpenSea has publicly stated that they got this notice from the SEC, which means they’re looking to bring some sort of enforcement action against the platform. Devin Finzer, the CEO of OpenSea, shared this news on X.

Well, nothing will change unless the government changes after the US election. SEC will keep on threatening the crypto related businesses. What's hilarious is that, SEC is considering NFTs as security. The action would have been appropriate if SEC told Opensea that this platform is being used for money laundering. People are buying stupid monkey images for millions of dollars and no one knows why! But considering NFTs as security is stupidity!

It just looks like Gary wants to make himself popular again after going silent since the XRP case. It's not news the dude's got something against cryptocurrencies and will put down every regulation necessary to ensure they whittle and fade away. I'm curious as to how this one will end because it seems Gary didn't learn anything when he issued a Wells notice to Coinbase.

The crypto industry is an emerging field. There will always be misinterpretations of regulations and miscalculations of legal jurisdiction which will give rise to litigations. It is the court that will interpret the law and their judgements will keep shaping the regulatory framework of the crypto sector until it becomes established. Impact Theory was also sued by the SEC for an Unregistered Offering of NFTs and without admitting or denying the SEC’s findings the firm decided to pay $6.1 million in civil penalties. Hence, SEC and crypto businesses will keep going to court until crypto laws become comprehensive and well documented.

@Fiatless. On Impact Theory's case, if they sold their NFTs on a private round to venture capitalists and private investors, this an be considered an illegal securities offering. However, if all of their NFTs were offered to be bought on a secondary market similar to Opensea, this is not a securities offering. The judge in Ripple's case has made the ruling already based on the rules that the SEC is presently has by law. This uncle Gary appears to be creating his own rules based on enforcement heheheh.

I wrote to you a long time ago that uncle Gary disagrees with your opinion. If you can get the money, why not get it? https://bitcointalk.org/index.php?topic=5505813.msg64459079#msg64459079

It appears you are very much confused on what is a ruling and what is only an opinion. The judge's ruling that the XRP tokens by themselves are not illegal securities is not my opinion hehehe. This is the judge's ruling that was created based on the rules and regulations of the SEC. Uncle Gary is the person who is imposing his opinion on the cryptospace by using a regulation through enforcement tactic. This is very spiteful behavior on the cryptospace very much similar to the behavior of grandma Yellen and grandma Warren.

I have said several times that I am not an expert on American law, but I see the exact opposite of what the SEC is doing despite the courts ruling. And based on this, I assume that the SEC will collect the maximum number of fines from everyone it can until there is a clear and understandable law.

@zasad@. I am not arguing on what the uncle Gary and SEC are doing. I am arguing on what you are implying that the SEC might be taking the correction action against Opensea. Have we not already witnessed the judge doing the SEC's job for them through the ruling created on XRP? The tokens by themselves are not illegal securities.

I strongly believe that under Gary's leadership, the SEC has transformed into a government agency that engages in extortion. It seems they have run out of meaningful work, and are now targeting the cryptocurrency market, which is still unregulated. They've been successful in extracting funds from some of the largest exchanges in the guise of penalties. Unless Opensea's CEO, Devin Finzer, takes a strong stand against the SEC, similar to the CEOs of Ripple and Coinbase, other major exchanges will likely be targeted as well.

Damn I mean you had to see this coming though. NFTs are going to be hit hard and they have been talking about something like this happening for some time now. It’s pretty crazy that they haven’t found a way to make them legitimate though I guess that will have to come through Ordinals 😉

I cannot be certain if uncle Gary is doing this tactic of regulation through enforcement to extort money, however, I know that he taught a blockchain course in MIT where he declared that Uber can run on Algorand. He was shilling Algorand and what has happened to this blockchain? Nothing has happened hehehehe. I speculate that he is a bagholder of these Algo tokens and it appears that he wants revenge against everyone in the cryptospace for his losses on Algo heheheheeh. He has become something similar to a bitcoin maximalist.

You do not need to be certain that he is abusing his powers as we are reading regularly how this guy has been after crypto exchanges operating in the US. He is a controversial figure and if Trump becomes the next president he will fired from his position. I do not think this guy will last longer on that position and before he leaves he wants to be in the history books of crypto for all his controversial decisions.

@pakhitheboss. The president cannot remove a person from an appointed position, only congress can do this if they vote to impeach uncle Gary. Trump can use his Republican friends to begin lobbying for this, however. In any case, it appears that uncle Gary was called to appear in congress to be questioned about certain issues under his department and the cryptospace. This news update is old, I have not read the latest news. I will share more after I read them. The crypto market braces as the US SEC Chair Gary Gensler confirms testifying before the congress this week. On September 24 and 25, the SEC Chair will testify before the Financial Services Committee and the US Senate Banking Committee. Notably, the crypto community and Capitol Hill are expecting intense scrutiny of the agency’s approach, given its aggressive stance on the digital assets space. Source https://coingape.com/us-sec-chair-gary-gensler-confirms-congress-testimony-heres-what-to-expect/

Yeah, that is what I meant mate, I know Congress needs to get involved in such cases. But. I have also read that Gary Gensler will likely resign in 2025 after Biden exit. In conclusion, this guy will not be in that position for long that is what I meant earlier, either by hook or by crook he will depart. If Trump does not win the next election, which I somehow feel he will, Gary might continue without any issue. The damages he has already caused or is planning to cause after leaving will take many years to resolve as those damages are beyond repairs now.

I don't know how the grilling went yesterday, i am yet to find any information about it, however, i would like to see what Gary Gensler's defense would be as to why the sec, through him is aggressive to cryptocurrencies and crypto firms. It is very obvious that he is attacking the industry and he has done it for many years now. I really hope he would not be chairman of the sec for a long time from now, the crypto world would be glad to see his back.

@pakhitheboss. If uncle Gary does not retire and the democrats in congress fight the republicans on the impeachment, we can be quite certain that there is a higher chance that uncle Gary will not be removed from his position. @Z-tight. Uncle Gary's term will end on 2026, I reckon. He will certainly be a problem for Trump's project on defi heheheh. On the news on his appearance in congress, he was criticized by some procrypto congressmen. On procypto on these politicians, this is not something similar to us who are here for community and technology. These politicians are procrypto only for their agenda. Rep Wiley Nickel raised concern regarding the matter of SAB 121 to the crypto custodians and other financial institutions. He said the SEC’s ignoring his office’s repeated requests showed that the agency had overstepped its bounds. While on the witness stand, Congressman Tom Emmer criticized Gensler for killing innovation in the crypto space through excessive regulation. Emmer also pointed to Gensler’s use of the term “crypto asset security,” stating that Emmer’s legal team could not find a definition for this term. Some critics have said that SAB 121 was particularly damaging to small firms and so-called crypto companies as it restricted their ability to compete. The rule mandates that financial institutions disclose their custodial assets, which has been a costly exercise for the smaller players. Read in full https://www.thecoinrepublic.com/2024/09/25/gary-gensler-defends-secs-use-of-sab-121-amid-criticism/

I don't really care why they are pro-crypto, nor if they are for their own agenda, though i wonder what that agenda is, however, what is certain is that the sec, under Gary Gensler is anti-crypto and he is stalling the growth of the crypto industry. From what i can understand, Gensler and the sec are also inconsistent in their regulation, with some firms having it easier than others. However, i don't expect anything to change, their defense is that they are protecting customers from crypto fraud and losses due to misappropriation of funds, and that'll be enough to see the sec through, as they continue the attack on the industry.

The article you quoted about Gary Gensler was published in June when it was unlikely that Kamala Harris would be able to compete favourably with Donald Trump. The race to the White House is now tight even though the Democrats have a slight advantage. It is natural for the SEC chairman to resign if the party that appointed him loses elections. So I would predict that Gary will resign if Harris loses to Trump but he would remain if it doesn't happen. Harris will likely continue with most of Biden's policies so most appointees will retain their offices.   He will certainly resign if Trump wins the election or the president will lobby the Congress to facilitate his impeachment. But the most honourable thing for him to do is to resign since they both have different ideologies.

This is always the reason given by the government. They will declare that they are passing bills, they are issuing executive orders and enforcing their laws for the the protection of the people. However, in reality they only do this to increase their control over you, the small minnows of this world. But the rulers and their friends are treated more favorably very much like the rules do not apply to them hehehehe.