Immutable revealed that the U.S. SEC has issued a Wells notice against it. This move signals potential charges, claiming Immutable violated securities laws and made misleading statements.
According to the blog post, the SEC also alleges that the IMX token is a security. Immutable believes the case targets IMX’s listing and private sale from 2021.
Immutable expressed frustration over the SEC’s notice, saying that the SEC still represents tokens as securities with such a broad stroke. The SEC’s past of forceful regulation is one of the major facts they pointed to, which was often enforced without the production of the necessary rules for compliance.
The company noted, “Regrettably, aggressive enforcement threats have become commonplace in our industry.” it cited the need for regulatory clarity, emphasizing how startups face massive legal costs while seeking compliance.
Minimal explanation is given in SEC’s notice to Immutable
This Wells notice came to the scene right before the U.S. elections, and thus, doubts arose about the election timing. Immutable said that the notice did not have enough details since the investigation had just over twenty words explaining it.
The SEC issued this document without any previous, in-depth discussions, even though that specific step is the one that often comes before such notices.
The company criticized the SEC’s pattern of enforcement-first tactics. It highlighted previous cases, such as Ripple’s 2023 court victory where XRP was deemed not a security and Grayscale’s win against the SEC’s “arbitrary and capricious” denial of its proposal.
Immutable sees the SEC’s actions as part of a broader overreach affecting various industries, including gaming. It remains steadfast, stating confidence in its position.
The company stated its long-term strategy of reinforcing property rights in interactive environments via Web3. ng Web3. “We are not here to play short-term games,” the firm made it clear, thus underscoring its commitment to the ownership of digital property.
The demand for collaboration from the crypto community is palpable. Immutable recommends the SEC enter into meaningful dialogues and adopt just, industry-centered regulations. However, Immutable stands its ground on the equal treatment issue and the prospect of blockchain future until then.
