Ripple CTO slams SEC for saying NFTs are securities, says US regulator contradicts

• Ripple CEO Stuart Alderoty criticized the Securities & Exchange Commission for Wells Notice sent to NFT platform OpenSea.
• Alderoty shared a letter from 1976 in which the regulator ruled that art galleries did not have to register with the SEC.
• NFT coins are in a state of decline on Saturday at a market capitalization of $25.13 billion.

Ripple Chief Technology Officer (CTO) Stuart Alderoty reacted to the Securities and Exchange Commission (SEC) Wells Notice sent to OpenSea. The NFT platform criticized the SEC for their stance on NFTs, while Ripple executives and industry experts sided with OpenSea.

Stuart Alderoty shared a letter from the regulator in which the SEC asks art galleries not to register, shedding light on the contradictory position of the agency led by Gary Gensler.

Art galleries are not required to register with the SEC, according to the 1976 letter

Ripple CTO, pro-crypto attorney and industry influencer Stuart Alderoty helped XRP traders digest the final ruling in the SEC vs. Ripple. Alderoty commented on what to expect if the regulator appeals the ruling and where the firm is headed.

In response to the SEC’s recent Wells Notice to OpenSea, Alderoty dropped a letter from the regulator, dating back to 1976, that says art galleries that sell to buyers with investment motives still don’t have to register with the agency.

The crypto community on X supports OpenSea as the NFT platform promises to “stand up and fight” the regulator.

Preston Byrne, a lawyer and crypto influencer, says the platform is immune from civil liability because it hosts user-generated content. Byrne said OpenSea’s business model allows users to sell the NFTs they have generated, meaning the platform is not the creator of the items sold there.

NFT coins have experienced a decline over the past seven days and over the past 24 hours on CoinGecko data. Sandbox (SAND), ApeCoin (APE), Floki (FLOKI) are down between 13 and 14% in the last seven days.