NFTs continue to be a popular instrument among cryptocurrency investors, but the peak of the hype around them was recorded in 2021-2022. Since then, it has become apparent that even the most common unique tokens are not suitable for holding capital for the long term.

For example, this is how the changes in the minimum price of representatives of the twelve largest NFT collections by market capitalisation since May 2022 look like.

Changes in the minimum price of popular NFT-collections from May 2022

The leader of the rating – Milady collection – has increased in price by 4638 per cent. At the same time, the legendary CryptoPunks series fell in price by 66 per cent, and Bored Ape Yacht Club representatives lost 91 per cent of their value.

Despite this, global celebrities continue to link up with NFT. For example, this week former US President Donald Trump announced his new collection, which we wrote about in detail in a separate article.

What will happen to the NFT because of the Securities Commission

On his Twitter page, Finzer posted the following message about what’s going on. His rejoinder is cited by Decrypt.

OpenSea received a Wells Notice from the SEC threatening to sue us because they believe NFTs on our platform are securities. We are shocked that the SEC has taken such a massive step against content creators and artists. But we are ready to stand up for our rights and fight.

Activity on OpenSea’s NFT platform will peak in 2022

Finzer said his company agreed to sue the SEC and pledged $5 million to cover legal costs for all NFT creators who may also have been victims of harassment. He continues.

I hope the SEC comes to its senses sooner rather than later and that they listen with an open mind.

Hayden Adams, the developer of decentralised exchange Uniswap, whose company had previously received a similar notice from the SEC, has reacted to the developments. Here’s the rejoinder.

Welcome to the battle! ⚔️ In the crypto world, Wells’ notice means you are a worthwhile company that is building an important product in the United States.

The SEC are clowns. They take the idiotic position that digital art magically becomes a security once it is placed on the blockchain.

Hayden Adams is the creator of the decentralised exchange Uniswap

According to sources, the SEC has sent cryptocurrency companies similar documents several times in recent years. Their essence is that the regulator has completed an investigation into a particular organisation and plans to take legal action against it in the near future.

Sometimes Wells’ notice can be considered a tool to force the opposite party to make a deal, i.e. in this case to pay a fine and give up certain functionality of the platform, as it was with the steaking for US citizens on the Kraken exchange in February 2023.

However, the notice directly to OpenSea signals a marked escalation in the SEC’s focus on NFTs. In the past, the SEC has been partially successful in convincing the court of its case.

SEC Chairman Gary Gensler

For example, as we have already recalled, in the summer of 2023, the court did not recognise the cryptocurrency XRP as a security. However, the regulator did have some success: Ripple’s transactions with large investors who bought XRP coins directly from their issuer were recognised as transactions with unregistered securities.

Purchases of XRP on centralised exchanges by ordinary users were not recognised by the court as securities transactions. So the regulator definitely lost here.

However, NFTs represent a different asset class that bears a great resemblance to art and collectibles. These areas are not subject to direct regulation by the SEC.

Recall that in 2023, the SEC filed two lawsuits against NFT projects Impact Theory and the Stoner Cats cartoon, accusing their creators of violating securities laws. Both lawsuits led to a deal with the regulator.

The number of active users on OpenSea

When the SEC reached a settlement agreement with Stoner Cats, the regulator emphasised that this project from Mila Kunis advertised the ability to resell its NFTs for specific added value. This allegedly shows that the tokens are unregistered securities. In any case, the collection in question has stopped trading on various platforms due to the proceedings with the Commission.

However, works of art and sought-after collectibles – from Andy Warhol paintings to rare Pokemon cards – can also have value and resell for much higher prices. For this reason, some experts believe it will be much more difficult for the SEC to justify how it can regulate art NFTs and digital collectibles, but not physical artwork and keepsakes.

The Commission has essentially achieved what it needed through coercion, and the lawsuits that have been filed have not resulted in the formation of any new rules to regulate unique tokens. If OpenSea suddenly goes through with the deal, it would further unleash the SEC’s enforcement actions against other companies.

The most popular NFT tokens

It’s still unclear exactly which NFT collections would qualify as securities on OpenSea. A spokesperson for the regulator said it “does not comment on the presence or absence of a possible investigation,” and the OpenSea team did not immediately respond to reporters’ request for comment on the content and scope of Wells’ notice, Coindesk elaborates.

In general, the platform hosts tens of thousands of different collections – from works of art created by independent artists to digital collectibles. There are also colourful projects like CryptoPunks and Bored Ape Yacht Club, which became a real sensation in the sphere of contemporary internet art during the previous bullrun.


It seems that the SEC is not going to promote the cryptocurrency industry under the current president and chairman. This situation also suggests that a possible win for Kamala Harris would not be good for the niche. Still, she is the current Vice President of the United States, which means she is probably happy with what is happening. Against this background, the importance of Trump's victory for crypto investors becomes even greater.