As the crypto market continues its rollercoaster journey, the U.S. Securities and Exchange Commission (SEC) remains actively engaged. In recent news, the SEC issued a Wells notice to Immutable, a blockchain gaming platform, indicating potential regulatory action. Immutable disclosed that this notification followed closely after an initial meeting with the SEC. The company believes that the SEC’s concerns may center on IMX’s 2021 listing and private sales, though the Wells notice reportedly provides limited details. Amid these developments, the token’s price has entered a downward trajectory.
SEC’s Wells Notice Prompts IMX Price Decline
Immutable revealed that the SEC’s Wells notice arrived shortly after their meeting, signaling possible enforcement action. A Wells notice serves as an official warning that SEC staff may recommend enforcement action against a firm. In response, Immutable made the following statement:
“Receiving a Wells notice shortly after our initial meeting with the SEC, just ahead of the upcoming election, highlights the accelerated timeline for this regulatory approach. Unfortunately, these occurrences are becoming less surprising. Over the past two months, we have witnessed growing SEC scrutiny on firms like Coinbase, ConsenSys, Uniswap, OpenSea, and Crypto.com. With this latest move against Immutable, the SEC’s reach is extending further, even into gaming.”
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Following the SEC’s notification, IMX fell from $1.36 to $1.15, recording a daily loss of over 15%. This decline was compounded by a notable 114% spike in trading volume, as traders and investors responded with increased sell orders.
Will Immutable Challenge the SEC?
Immutable believes the SEC’s claims may pertain to IMX’s 2021 listing and private sales, though details are limited. The company has also been informed of related Department of Justice (DOJ) inquiries, though no formal actions have been initiated. A representative stated, “The SEC does not comment on the existence or non-existence of any investigation,” while Immutable asserts that IMX is not a security and is prepared to defend its stance if necessary.
Immutable emphasized its confidence in blockchain’s value to the gaming sector, stating: “We believe in our position and in the value that digital ownership brings to 3.1 billion players worldwide. We are prepared to vigorously defend these rights and our industry’s rights if needed.”
As The Bit Journal has previously reported, several major crypto firms have recently received Wells notices, including Robinhood Crypto, Crypto.com, and OpenSea. The SEC has also taken enforcement actions against large firms like Coinbase and Kraken. SEC Chairman Gary Gensler has consistently urged crypto firms to register with the agency, emphasizing adherence to regulations and the importance of investor protection.
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