Lucía Peña
Blockchain gaming platform Immutable disclosed that the U.S. Securities and Exchange Commission (SEC) has issued a Wells notice, indicating the agency may recommend an enforcement action for potential securities law violations.
The Wells notice was reportedly sent shortly after Immutable’s initial meeting with the SEC. This form of notice typically signals that SEC staff might suggest enforcement action. According to Immutable’s statement on Thursday, the usual process involves months of discussions before a Wells notice is issued, but in this case, the notice was sent just hours after the first interaction with SEC representatives.
Immutable suspects that the SEC’s concerns may involve the listing and private sales of IMX tokens in 2021. However, the notice lacked specific details. The company mentioned it was aware of related inquiries from the Department of Justice (DOJ) but no formal legal actions.
Immutable Wells is not the only crypto startup to receive the notification
In recent years, several crypto companies, including Robinhood Crypto, Crypto.com, and OpenSea, have received Wells notices from the SEC, which has also pursued enforcement actions against Coinbase, Kraken, and other major platforms. SEC Chair Gary Gensler has maintained that crypto companies should register with the SEC to comply with securities laws, asserting the importance of investor protection.
Many in the cryptocurrency space argue that SEC regulations don’t account for the unique nature of digital assets, making registration impractical under current rules designed for traditional finance.
Immutable remains firm in its stance, asserting that IMX does not qualify as a security and expressing a willingness to defend its position if necessary. “We are confident in the value of digital ownership for billions of gamers and in blockchain’s potential to create a more open internet,” Immutable shared on social media platform X, emphasizing its commitment to defending the rights of both its company and the industry.
