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SEC, Led by Gary Gensler, Intensifies Scrutiny on NFTs and Crypto Firms

Aug 28, 2024, 02:16 PM

The U.S. Securities and Exchange Commission (SEC) has intensified its scrutiny of the cryptocurrency industry, targeting prominent companies such as OpenSea, Coinbase, Robinhood, Uniswap, and Consensys. The SEC's actions have sparked significant debate within the crypto community, with many arguing that digital assets like NFTs should not be regulated as securities. Critics claim that the SEC's approach, often described as 'regulation by enforcement,' lacks clarity and understanding of the unique nature of digital art and collectibles. The controversy centers on whether NFTs, often associated with digital art and collectibles, should be classified as securities under existing financial regulations. This regulatory push has led to legal challenges, with industry leaders and companies like OpenSea vowing to contest the SEC's stance. Gary Gensler, the SEC Chairman, is at the forefront of this regulatory effort, which also involves scrutiny of NFT projects with promised 'roadmaps' that resemble securities, such as BAYC.