Crypto leaders denounce ‘absurd’ SEC investigation of OpenSea as an attack on ‘web3 artists’

Recent actions from the cryptoverse have sparked controversy. Venture capitalist Katie Hahn argued that artwork should not be classified as a security, leading to backlash against the SEC. Gary Gensler, the chair of the SEC, has once again stirred up emotions within the crypto community.

Notable figures in the crypto space expressed their outrage and confusion about the SEC’s investigation into OpenSea, a popular NFT marketplace. Jesse Powell of Kraken criticized Gensler, while Mark Cuban and Brian Armstrong also shared their thoughts on the matter.

NFTs Under Scrutiny

The SEC’s recent focus on NFTs as potential securities has raised concerns in the industry. OpenSea, known as the second largest NFT marketplace, disclosed that it was under investigation by the SEC for potentially selling unregistered securities.

This move aligns with Gensler’s view that cryptocurrencies should be regulated similarly to traditional securities. As NFTs face regulatory challenges, their market has suffered a significant decline in trading volume.

Crypto supporters, including Katie Haun of Haun Ventures, have argued against classifying NFTs as securities. The controversy surrounding NFTs has also impacted businesses like OpenSea, which has seen a decline in its market share compared to competitors like Blur.

Industry Resistance

Notable figures like Anthony Scaramucci and Tyler Winklevoss have criticized the SEC’s approach to regulating NFTs, with Winklevoss calling it a “war on crypto.” Some industry leaders, like Kraken’s Jesse Powell, believe that the SEC’s actions are meant to disrupt the crypto space rather than protect investors.

Despite the controversy, the SEC has remained tight-lipped about its investigation into OpenSea. The crypto community continues to monitor developments in this ongoing regulatory battle over the classification of NFTs.

Osato Avan-Nomayo is our DeFi correspondent based in Nigeria, covering the latest developments in DeFi and technology. For tips or story leads, you can reach him at osato@dlnews.com.

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