"Gold Finance reported that OpenSea received a Wells notice from the U.S. Securities and Exchange Commission (SEC) last month. While the regulator has taken enforcement action against NFT projects in the past, the disclosure targeting OpenSea suggests the SEC has begun scrutinizing entities that provide trading platforms for NFTs, not just the entities that initially offered them.

Magic Eden is currently not the subject of SEC scrutiny, but its CEO, Lu, acknowledges that the lawsuit against OpenSea could have broad implications for the cryptocurrency space, a space that remains relatively untouched by regulators compared to exchanges or crypto issuers. “Regulatory uncertainty is basically a given.” Lu said, “If this incident can bring more clarity to the space, I welcome it.”