OpenSea Receives Wells Notice from SEC, Calling NFTs Sold on Securities Platform

In 2023, the SEC brought two enforcement actions against NFT projects – Impact Theory and Stoner Cats – claiming that both projects violated securities laws. Both actions resulted in settlements with the agency. Enforcement actions against Stoner Cats and Impact Theory, as well as a series of class-action lawsuits against other NFT companies like Dapper Labs, have led to something of a chilling effect in the NFT space as creators and companies wait to find out how they will . regulated. In July, online betting company DraftKings announced it was shutting down its NFT business, citing “recent legal developments.”