Web3 Watch: SEC sets its sights on gaming

The latest recipient of an SEC Wells notice is a Web3 gaming company

November 2, 2024 12:00 pm

SEC Chair Gary Gensler | Muhammad Alimaki/Shutterstock modified by Blockworks

Web3 gaming firm Immutable on Friday announced it had received a Wells notice from the US Securities and Exchange Commission, indicating that the regulator may soon pursue an enforcement action against the company.

The SEC has “non-specifically” alleged Immutable has violated securities laws and misrepresented itself to users, Immutable wrote in a statement.

“In our very first interaction with the SEC, we were told a Wells notice would be issued to the company within the week. We then received it within hours,” the statement added.

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While the SEC was vague in the nature of its investigation, Immutable said, executives presume the securities regulator is targeting the company’s IMX token, which were privately sold in 2021. Following the announcement, IMX was trading more than 13% lower on Friday at 12 pm ET.

Immutable’s message to regulators?

“Engage with the industry. Create clear and fit-for-purpose industry rules and regulatory guidelines, and we will follow them.”

The news comes as other crypto companies report being on the SEC’s radar. NFT marketplace OpenSea in April received a Wells notice from the regulator, alleging NFTs sold on the platform are classified as securities.

Last month, Crypto.com filed a suit against the SEC after it said it received a Wells notice over the summer. The exchange said the preemptive countersuit was intended to “protect the future of the crypto industry in the US.”

An interesting stat:

DeFi and crypto adoption is growing in Eastern Europe, a new report from Chainalysis shows. The region received over $499 billion worth of cryptocurrency between July 2023 and June 2024, accounting for 11% of the total global share.

Also of note:

Bridge, which Stripe is acquiring for $1.1 billion, announced Friday that it bought Web3 wallet infrastructure company Triangle for an undisclosed amount.
Coinbase and Visa announced on Tuesday a partnership to integrate Visa Direct on the crypto exchange, allowing users to make deposits via Visa debit cards.

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