Ripple CTO slams SEC for saying NFTs are securities, says US regulator is contradicting itself
- Ripple executive Stuart Alderoty criticized the Securities & Exchange Commission for Wells Notice sent to NFT platform OpenSea.
- Alderoty shared a 1976 letter where the regulator ruled that art galleries don’t need to register with the SEC.
- NFT coins are in a state of decline on Saturday, at a market capitalization of $25.13 billion.
Ripple Chief Technology Officer (CTO) Stuart Alderoty reacted to Securities & Exchange Commission’s (SEC) Wells Notice sent to OpenSea. The NFT platform slammed the SEC for their stance on NFTs while Ripple executive and industry experts sided with OpenSea.
Stuart Alderoty shared a letter by the regulator where the SEC asks art galleries not to register themselves, shedding light on the contradictory stance of the Gary Gensler-led agency.
Art galleries not required to register with SEC, according to 1976 letter
Ripple CTO, pro-crypto attorney and an influencer in the industry, Stuart Alderoty has helped XRP traders digest the final ruling in the SEC vs. Ripple lawsuit. Alderoty commented on what to expect if the regulator appeals the ruling and where the firm is headed next.
In response to SEC’s recent Wells Notice to OpenSea, Alderoty dropped a letter by the regulator, from 1976, that states that art galleries selling to buyers that have investment motives, still don’t need to register with the agency.
Fun fact: In 1976, the SEC ruled that art galleries, even when promoting and selling to buyers that had investment motives, didn’t need to register with the SEC. https://t.co/CtQJ3mlPkh pic.twitter.com/oR8EgGpXoo
— Stuart Alderoty (@s_alderoty) August 29, 2024
The crypto community on X is supporting OpenSea as the NFT platform vows to “stand up and fight” the regulator.
Preston Byrne, attorney and a crypto influencer says that the platform is immune to civil liability as it hosts user-generated content. Byrne said that OpenSea’s business model allows users to sell the NFTs they generated, meaning the platform is not the creator of the items sold on there.
What happens if the SEC follows through on its threat to sue OpenSea?
— Laura Shin (@laurashin) August 31, 2024
️ @prestonjbyrne says, “OpenSea is going to have a really good argument that they’re civilly immune under federal law.”
Tune in https://t.co/4THc89b6ip pic.twitter.com/0yhymfTk8C
NFT coins suffered a decline in the last seven days and past 24 hours per CoinGecko data. The Sandbox (SAND), ApeCoin (APE), Floki (FLOKI) dipped between 13 and 14% in the last seven days.
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