US Lawmaker Criticizes SEC's Enforcement Approach

According to Odaily, Democratic Congressman Wiley Nickel has strongly criticized the U.S. Securities and Exchange Commission (SEC) for its enforcement approach, accusing the agency of undermining trust in the regulatory system. In a recent social media post, Nickel described the SEC's actions as a 'blatant abuse of power' that could stifle digital innovation across the United States. The congressman, a supporter of cryptocurrency, has been advocating for a regulatory framework to ensure customer protection. He warned that the SEC's aggressive enforcement strategy is creating widespread uncertainty, potentially hindering the progress of emerging technologies, particularly in the Web3 and digital asset sectors. Nickel further stated that the SEC should collaborate with Congress to develop clear and fair regulations through a transparent process that includes public input. He emphasized that only through such cooperation can a balanced regulatory framework be established to protect consumers while supporting the continuous innovation of digital technologies. In related news, OpenSea announced on the X platform that it has received a Wells notice from the SEC. The company expressed shock at the SEC's actions, which it views as threatening to creators and artists. OpenSea has pledged to stand up for the industry and plans to provide $5 million to cover legal fees for NFT artists and developers who have received Wells notices, aiming to ensure that creators can continue their work without fear.