SEC's crackdown on NFTs sparks fears of stifling crypto innovation

The Securities and Exchange Commission recently hit NFT exchange OpenSea with a Wells notice — and now the industry is reeling.

Roundtable anchor, Rob Nelson, along with Wendy O, host of CryptoWendyO, and John Divine, Head of OTC Trading at BlockFills , shared their thoughts.

Rob Nelson opened the conversation, stating, "The SEC issues a Wells notice... it's basically like the final warning before they actually press charges... It has a really chilling effect that makes people scared. They want to make you feel like you're in dangerous waters."

Wendy O responded, "I just think it's absolutely ridiculous... the public servants really haven't done that great of a job of providing any kind of guidance... we're seeing a direct attack on American entrepreneurs." She also emphasized, "To me, it's an epic fail... there's bad actors in every single industry, but to go after one of the largest platforms is absolutely ridiculous and absurd."

Rob Nelson agreed with her, saying, "My fear is... stop these guys before they actually undercut us in the next 10 years."

The SEC has previously brought enforcement actions against other NFT projects, including the Mila Kunis-backed Stoner Cats project .

John Divine added, "Wendy nailed it when she said it's an attack on entrepreneurs... to go after OpenSea and claim they're participating in securities trading is wild... this is an attack on innovation and entrepreneurship."