News Scrap

The American securities regulatory body has sent a Wells notice to a top blockchain gaming company, but crypto investors remain unfazed.

Immutable is a blockchain gaming company focused on integrating blockchain technology into video games, aiming to empower players with true ownership of digital assets through NFTs (non-fungible tokens). Founded in 2018 and based in Sydney, Immutable offers a Layer 2 scaling solution, Immutable X, built on the Ethereum blockchain, enabling fast, secure, and gas-free NFT trading.

On 1 Nov 2024, Immutable confirmed through a blog post that the company received a Wells notice from the United States Securities and Exchange Commission (SEC).

As per the report, the company received this legal notice due to alleged violations of securities law and misrepresentations by the company.

Immutable has received a Wells notice from the SEC, the latest in their de facto policy of regulation by enforcement. We received this within hours of our first ever conversation, on a timeline clearly accelerated to land before an election.

Sadly, stories like this are becoming…

— Immutable (@Immutable) October 31, 2024

A Wells notice essentially serves as advance notice before potential legal action by a regulatory body. In short, the SEC is considering taking legal action against Immutable.

Immutable assured that its business would remain active as usual and that they would continue “doing what we do best—building products and services for games and players.”

This latest development regarding the Immutable vs. SEC case has been largely ignored by crypto investors, as similar Wells notices and lawsuits have already been issued by the SEC against other top crypto companies.

US Election & Potential Changes

Currently, Gary Gensler is the chairman of the SEC agency. Gensler faces heavy criticism from crypto entrepreneurs due to his stance against cryptocurrencies. While no one can remove Gensler from his role, it is believed that things may change next year if the next U.S. president is pro-crypto.

Some crypto pundits caution against speculating about the SEC’s future stance on cryptocurrencies, as Gensler is expected to remain in his position until 2026. However, a new set of rules could potentially improve the situation for the crypto sector within U.S. jurisdiction.