While the cryptocurrency market continues its rollercaster journey, the US SEC is not standing idle. In a recent development, it was revealed that the SEC sent a Wells notice to Immutable. The company announced that the SEC sent a notice to Wells shortly after its first meeting with the SEC. Immutable said it believes the SEC’s allegations may include IMX’s listing and private sales in 2021, but the Wells filing contains sparse details. Amid these developments, the altcoin price entered a downward trajectory.
Immutable received Wells notice from SEC, altcoin price dropped!
Blockchain gaming platform Immutable announced that the SEC sent a Wells notice shortly after the meeting. A Wells notice is a form of communication from SEC staff informing a firm that agency staff may recommend enforcement action against them. That’s why the SEC signaled that it would file an enforcement action against Immutable. Immutable made the following statement regarding the issue:
Immutable received a Wells notice from the SEC; This is the last of their de facto regulation-by-enforcement policies. We received this within hours of our first meeting, on an obviously expedited timeline to arrive before the election. Unfortunately, stories like these become less surprising each time. Over the last two months we have seen a growing number of companies facing SEC escalations, including Coinbase, Consensys, Uniswap, OpenSea, cryptocom, and more. With this latest move against Immutable, the SEC’s overreach continues and expands into games. (…)
Source: XFollowing this development, the altcoin price started to decline. IMX dropped from $1.36 to $1.15 during the day. IMX continues its downward trend due to the negative atmosphere in the market. At the time of writing, the token was changing hands at $1.15, losing over 15% on a daily basis. Meanwhile, the token’s trading volume saw a phenomenal increase of 114% in the same time period. This shows that investors and traders increased their sell-side transaction volume.
IMX daily price chart. Source: CoinMarketCapWill Immutable compete against the SEC?
The project said it believes the SEC’s allegations could include listings and private sales in 2021, but the notice contained sparse details. Altcoin also stated that it was aware of relevant investigations from the Department of Justice. But he noted there was no actual or proposed legal action. “The SEC does not comment on the existence or absence of a possible investigation,” an agency spokesman said. Immutable, on the other hand, claims that IMX is not a security. He also emphasizes that he will argue his case if necessary. In this regard, the altcoin project underlined the following points:
We are confident in our position, the value digital ownership can bring to 3.1 billion gamers worldwide, and the power of Blockchain to create a better internet. If necessary, we will fight violently for these rights and the rights of our industry.
As you follow on Kriptokoin.com, many crypto companies received Wells notifications last year. These include giants such as Robinhood Crypto, Crypto.com and OpenSea. The SEC has also initiated a series of enforcement actions against large firms such as Coinbase and Kraken. As you know, SEC Chairman Gary Gensler wants crypto companies to register with the agency. He also says firms must abide by their rules and investor protections are vital.
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