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Amid increasing scrutiny of digital assets, Immutable, a gaming blockchain platform, has challenged a Wells notice by the US Securities and Exchange Commission (SEC), which alleges violations of securities law and alleged misrepresentations.

In a blog post, Immutable claimed the SEC’s latest enforcement actions “continue to indiscriminately assert that tokens are securities.” 

In a discussion with SEC — 10 minutes after Immutable received the Wells notice — the regulator alleged that a 2021 blog post “stating a pre-launch investment made in the IMX token at a price of $0.10 ($10 pre 100:1 split) was inaccurate and implied there was no exchange of value between the parties.”

Responding to the SEC’s allegations, Immutable stated, “the SEC is incorrect; there was real consideration, which they would have learned through a constructive dialogue with the company.”

Despite the Wells Notice from the US Securities and Exchange Commission (SEC), Immutable emphasized its mission to provide users with true ownership of in-game assets, ensuring interoperability, transparency, and secure asset management through blockchain technology.

Immutable’s defense comes as the SEC intensifies regulatory oversight over blockchain-based assets, sparking debate across the crypto industry about digital rights and asset classification. 

In its response, Immutable underlined the distinction between its digital collectibles and traditional securities, asserting that its assets are built to enhance player experience rather than serve as investment vehicles.

Continuing to criticize the regulators actions. Immutable also states that the SEC has taken action against the multiple crypto firms, such as OpenSea and Ripple, this year alone and still fails to provide clear guidelines for the industry.

Concluding its statements, Immutable stated that SEC needs to communicate with the crypto industry and “create clear and fit-for-purpose industry rules and regulatory guidelines.”