According to Foresight News, the NFT project CyberKongz stated that it has received a Wells Notice from the U.S. Securities and Exchange Commission (SEC). The team expressed, 'The SEC demonstrates a complete lack of understanding of blockchain technology, leading to unfair accusations and inaccurate information. The SEC enforcement division has made very concerning statements to us, indicating that tokens (ERC-20) cannot be used in conjunction with blockchain games unless they are registered as securities. One of their main concerns regarding CyberKongz is the 'sale' of Genesis Kongz in April 2021, which was actually a contract migration. If they cannot distinguish between primary sales and contract migrations, what hope do we have for a clear regulatory path in the future? The current government is trying to push their anti-crypto agenda at the last minute. We hope the new government can put an end to this injustice in our industry, but until then we will fight for all NFT projects on the chain.'
A Wells Notice is a form of communication issued by staff of the U.S. Securities and Exchange Commission, intended to inform a company that the agency's staff may recommend enforcement action against it.
