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OpenSea, one of the largest marketplaces for non-fungible tokens (NFTs) may be facing regulatory action from the U.S. Securities Exchange Commission (SEC).
The company has received a Wells Notice—a notification from the regulator about a completed investigation and any potential enforcement actions—its CEO Devin Finzer said in a post on X.
According to Finzer, the SEC alleges that sale of NFTs on OpenSea broke securities laws because NFTs are securities and those transactions constituted sales of unregistered securities.
NFTs are unique digital assets that provide proof of ownership of an underlying asset such as art, trading cards, sports memorabilia etc. that is verified on a blockchain. They may be exchanged for cryptocurrencies or dollars but are called non-fungible because they cannot be exchanged for each other.
OpenSea contests that the regulator's allegations do not apply and that it is "ready to stand up and fight."
"NFTs are fundamentally creative goods: art, collectibles, video game items, domain names, event tickets, and more, Finzer wrote, adding, "we should not regulate digital art in the same way we regulate collateralized debt obligations."
This action by the SEC is not isolated, as it follows a pattern of increased scrutiny of crypto-related companies. Earlier this year, decentralized exchange Uniswap and blockchain technology firm Consensys also received Wells Notices, indicating a broader regulatory focus on the cryptocurrency and decentralized finance (DeFi) space. Robinhood (HOOD) also disclosed a Wells Notice against its crypto platform in May while crypto exchanges, such as Coinbase (COIN) and Kraken, have ongoing cases with the SEC.
But SEC's enforcement approach has raised concerns about its impact on the entire NFT ecosystem.
Some creators have already taken proactive steps, with two NFT artists filing a lawsuit against the SEC last month, seeking clarity on the regulator's approach to NFTs.
Additionally, OpenSea has pledged $5 million to assist with legal fees for NFT creators and developers who may receive Wells notices from the SEC.
NFTs soared in popularity in 2022, with some specific ones selling for millions of dollars. That said, NFT market activity has decreased dramatically from its peak, according to data from OKX, with weekly trading volume dropping from over $2 billion to around $50 million.
They may have lost momentum but they are not forgotten as former U.S. President Donald Trump released an NFT collection on Tuesday.
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Investopedia
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Artificial intelligence (AI) chipmaker Nvidia (NVDA) is set to report its fiscal second-quarter earnings after the bell Wednesday, with investors likely watching what its results could signal about the strength of AI demand.
Nvidia's earning results could be "viewed globally as the most significant 'tell' about the outlook for AI spending," LPL Financial Chief Global Strategist Quincy Krosby said Wednesday, ahead of Nvidia's results.
Krosby said that based on analysts' projections, Nvidia's results are expected to "confirm that demand remains strong," which could boost investor sentiment for the stock and others in the AI space.
Nvidia has established itself as an early winner of the AI boom, with shares more than doubling in value from the start of the year, despite some headwinds in recent months.
Many of Nvidia's partners like Arm (ARM) and Micron Technology (MU), as well as other companies in the AI space, have climbed since the start of the year amid expectations of AI-driven growth.
Nvidia shares were 1.9% lower at $125.84 Wednesday afternoon, ahead of the company's earnings, though most analysts maintained a "buy" or equivalent rating for the stock, anticipating further gains.
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Instablog9ja
2 hrs
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NAHCO staff has been hailed for returning missing $10,000 to the authorities at Malam Aminu Kano International airport, Kano.
This Boy, Named Auwal Ahmed Dankode, an Employee of Nigeria Aviation Handling Company (NAHCO), Found $10,000, approximately 16 Million Naira inside a Plane While Cleaning It.
Upon discovering the money, Auwal immediately reported it to the airline company’s manager to initiate the search for the rightful owner. The incident took place at Malam Aminu Kano International Airport. Auwal, originally from Kode in Kano State, is known for his strong fear of God and honesty.
Investopedia
2 hrs
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If your company relocated its headquarters, would you move with it if it weren't required?
That's the question facing employees at Foot Locker (FL), which on Wednesday said it would move to St. Petersburg, Fla., from New York City late next year, maintaining "only a limited presence in New York City going forward."
The move is intended to increase collaboration and cut costs, the company said as part of the release of its latest quarterly financial results, adding it would open a technology site in Dallas in September. It also builds on its already "meaningful presence in St. Petersburg," Foot Locker said.
Chief Executive Officer (CEO) Mary Dillon said on the company's conference call with analysts Wednesday that Foot Locker was still determining which departments might move. "But generally speaking, it's kind of a move to enhance the center of gravity we have already, while maintaining a presence in New York," Dillon said on the call, a transcript of which was made available by AlphaSense.
One wrinkle: Executives said on the call that they wouldn't require relocation. According to an Atlas Van Lines survey released earlier this year, about two-thirds of companies said an employee declined to relocate in 2023.
"We really think we'll be able to … retain our great talent," Dillon said.
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Instablog9ja
3 hrs
10
A lady has revealed how a man who’s indisposed asked his woman for one ‘work out’ session to cure him.
The man was sick and he was visited by his woman who hurriedly showed up and wish her man get better. Next thing the man is asking her for one round of work out and that it will cure him.
Investopedia
3 hrs
12
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Mortgage rates keep dropping, but it isn't enough to get many prospective homebuyers off the sidelines.
According to data from the Mortgage Brokers Association (MBA) Wednesday, the volume of mortgage loan applications was mostly flat for the week ending on Aug. 23, up only a half-percentage point compared with the prior week.
Many potential buyers have been priced out of the market for about two years as high interest rates gridlocked the housing market. However, recent demand has remained muted despite drops in the average interest rate offered on 30-year, fixed mortgages. The MBA calculated that the average mortgage rate is now at its lowest since April 2023, at 6.44%.
“As observed in recent weeks, despite lower rates, purchase applications have not moved much,” said Joel Kan, MBA vice president and deputy chief economist. “Prospective homebuyers are staying patient now that rates are moving lower and for-sale inventory has started to increase.”
Broader economic forces could be keeping potential home buyers from reentering the market, Wells Fargo economists found last week.
"The loss of momentum in the labor market recently, and potential for further weakening down the road, might be causing buyers to postpone a home purchase until more stability arrives," they wrote. "What's more, real income growth has downshifted alongside a slower pace of hiring and increased supply of workers."
Additionally, the effects of sustained high interest are still working their way through the housing market. Sellers still hesitate to trade their ultra-low pandemic-era rates for prevailing rates that are nearly twice what they currently pay. That has left buyers with fewer options and low supply continues to push prices further up. As a result, home prices hit another record high in the most recent tally.
Many of these economic forces are likely to change course soon.
The Federal Reserve is expected to reduce its federal funds rate from its current record high in its next meeting in September, which will likely help beleaguered buyers. Mortgage rates are heavily influenced by the fed funds rate and will likely fall as the central bank makes cuts.
While falling mortgage rates so far haven't been enough to entice buyers back thus far, the Fed's cuts are designed to stabilize the labor market and may also encourage sellers to list more homes, economists said.
"A dip in mortgage rates as the Federal Reserve pivots to a less restrictive stance of monetary policy could improve affordability and provide a needed jolt to the residential sector," the Wells Fargo economists wrote.
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