J-PEGS VS SEC: Bored Ape Yacht Club Members React To OpenSea's Wells Notice For Selling Unregulated Securities!

Things were anything but boring around the swamp today as Bored Ape Yacht Club members reacted and meme’d in response to the news that NFT marketplace OpenSea had received a Wells Notice from the United States Securities and Exchange Commission, headed by Gary Gensler.

On Wednesday, OpenSea Co-Founder and CEO Devin Finzer took to Twitter to announce that his company had received a Wells Notice from the SEC, indicating the agency's plan to bring enforcement action against the platform for selling unregulated securities.

 

“We're shocked the SEC would make such a sweeping move against creators and artists,” Finzer tweeted. “But we're ready to stand up and fight. Cryptocurrencies have long been in the crosshairs of the SEC, and companies like @coinbase, @Uniswap, @RobinhoodApp, @krakenfx, and @Consensys. I have been fighting against the SEC's single-track approach of "regulation by enforcement." But this is a move into uncharted territory. By targeting NFTs, the SEC would stifle innovation on an even broader scale: hundreds of thousands of online artists and creatives are at risk, and many do not have the resources to defend themselves. NFTs are fundamentally creative goods: art, collectibles, video game items, domain names, event tickets, and more. We should not regulate digital art in the same way we regulate collateralized debt obligations. As we've built OpenSea, we've heard so many stories about the impact of NFTs on people’s lives.”

 

Finzer went on to say that he and his company will not only fight the SEC in court but are also pledging $5 million USD to cover potential legal bills for artists in the Web3 space.

“I hope the SEC will come to its senses sooner rather than later, and that they'll listen with an open mind,” he wrote. “Until then, we'll stand up and fight for our industry. Onwards”

 

After Finzer’s tweet, Animoca Brands founder and BAYC member Yat Siu took to the timeline to stand with OpenSea.

“Stamps, Baseball or Magic the Gathering cards, CS:GO Skins, paintings and autographs are not securities and neither are NFTs which are generally speaking containers of digital culture,” he tweeted. “While it is unfortunate we applaud the efforts of @opensea to stand up for the industry!”

 

As the day went on, more and more Apes filled the timeline with copypasta about their PFPs not being securities.

Others made jokes about all of us going to jail!

"Too soon,” BAYC member VickiJ tweeted along with her prision jumpsuit wearing primate behind bars, presumably for violating securtites laws.

 

 

The Bored Ape Gazette will continue to follow OpenSea’s fight against the SEC and will keep you updated on how the courts eventually rule on our JPEGs. Stay tuned for updates!