Update (March 25, 10:09 PM UTC): This article has been updated and includes answers from the SEC and an X-post from Robbie Ferguson.
According to Web3 gaming platform Immutable, the Securities and Exchange Commission has concluded its investigation into the company and has resolved further actions.
Immutable – the company behind Ethereum Layer-2 Immutable X – said in a statement on March 25 that the SEC has closed its investigation into the company without finding fraud and “closes the loop of Wells notifications issued by the SEC last year.”
In November, Immutable said it received a Wells notification from regulators. This is a letter informing the SEC is considering enforcement action and was sent after it concluded that there was evidence that it was likely a violation of the Securities Act.
“We are pleased that the SEC has concluded its investigation, a key milestone for the crypto industry and the gaming as it moves forward towards the future with clarity of regulations.”
The immutable spokesman told the Cointelegraph that he had sent a letter of termination that did not explain why the SEC concluded the probe. A spokesperson said the letter was not approved and said the SEC’s unchanging information review “appears to have shut down the investigation.”
Source: Robbie Ferguson
A spokesman for the SEC told the Cointelegraph it had not commented on the existence or presence of any possible investigations.
In a blog post in November, Immutable said it believes the SEC is targeting 2021 “listings and private sales” of self-title immutable (IMX) tokens.
The company said it made a 10-minute call with the SEC after issuing a notice stating the pre-selling investment that was made in 2021 in its IMX token at a price of $0.10.
At the time, the immutable would say it was “confident in its position” and fight the claims of regulators.
The SEC has repealed many pending and ongoing enforcement measures against crypto companies under President Donald Trump.
Last month, the SEC stopped investigating in inappropriate token marketplace OPENCE, trading platform Robinhood, decentralized exchange developer UnisWap Labs and Crypto Exchange Gemini.
Related: Does New US SEC Rules bring crypto companies on land?
Regulators also dropped a number of high-profile lawsuits against crypto companies, including those against Ripple Labs, Coinbase and Kraken.
Despite the SEC’s retreat from the constant, Manhattan-based Rosen law firm cited Wells’ notice as it attempted to spin up a securities class action lawsuit against the company over the provision of IMX tokens that an Imxable spokesperson said were “not worried.”
In its statement, Immutable said that major triple AAA gaming studios had cited legal and compliance risks as important barriers to entry into the Web3 gaming space.
“However, with a clear regulatory framework on the horizon, this is expected to unlock further investments and opportunities to tokenize a market of over $100 billion for in-game purchases,” he added.
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