Pudgy Penguins CEO Unconcerned by SEC Crackdown on NFT Industry

Pudgy Penguins CEO Luca Schnetzler, also known as Luca Netz in the NFT community, has expressed that he is not concerned about the recent enforcement actions by the US Securities and Exchange Commission (SEC) targeting the NFT sector.

On August 28, OpenSea, a leading NFT marketplace, announced that it had received a Wells notice from the SEC, suggesting that some NFTs traded on the platform might be considered securities. Just a few weeks later, on September 17, the SEC fined the Flyfish Club $750,000 for offering NFTs to investors.

While the SEC's increased scrutiny has prompted some within the industry to call for a response, Schnetzler has brushed off these developments, calling them "nonsense."

SEC’s NFT actions called a “non-issue” In an interview at Token2049 with Cointelegraph’s managing editor Gareth Jenkinson, Schnetzler acknowledged that although certain aspects of NFT issuance may present challenges, most of the regulatory noise is irrelevant. "Honestly, it's a non-issue," he said.

Schnetzler further emphasized that if the SEC targets OpenSea, it would need to pursue several other major players in the NFT world:

“If the SEC is going after OpenSea, they’ll also have to target big names like Sotheby’s, Nike, and even Pokemon. At this point, it’s getting ridiculous,” he stated.

In an earlier interview, attorney Oscar Franklin Tan told Cointelegraph that while some NFTs might resemble securities under specific conditions, these are not typically the digital collectibles found on platforms like OpenSea.

Schnetzler agreed with this assessment, explaining that OpenSea operates differently. "OpenSea isn't selling people unrealistic promises or dreams, and because of that, I’m not worried at all,” he clarified.

Pudgy Penguins CEO stresses investor responsibility While regulators like the SEC focus on protecting investors, Schnetzler believes that individual responsibility is key when it comes to purchasing NFTs. He explained:

“There needs to be a sense of accountability when buying digital assets like NFTs. Whether you’re spending $1,000 or $100,000, that’s your decision, and you should own it.”

He also added that while NFTs can be interpreted in numerous ways, at the core, "they're just images, simple JPGs."