ChainCatcher reported that OpenSea received a Wells Notice from the US Securities and Exchange Commission (SEC) last month. While regulators have previously taken enforcement actions against NFT projects, the disclosure regarding OpenSea indicates that the SEC has begun scrutinizing entities that provide trading platforms for NFTs, not just the entities that initially offer these platforms.

Magic Eden has not yet become a target of the SEC, but its CEO, Lu, acknowledged that the lawsuit against OpenSea could have a widespread impact on the cryptocurrency sector, which has been relatively untouched by regulators compared to exchanges or cryptocurrency issuers. "Regulatory uncertainty is basically inevitable," Lu said. "If this event can bring more clarity to the field, I welcome it."