The US Securities and Exchange Commission (SEC) has officially closed its investigation into Ethereum-based gaming platform Immutable (IMX), with no enforcement action taken against the company. Immutable announced the development on Tuesday, marking the conclusion of a five-month regulatory probe that had cast uncertainty over the future of the Web3 gaming firm.‍

Regulatory Scrutiny and Immutable’s Response

The SEC's investigation stemmed from a Wells Notice issued to Immutable in October 2024, signaling potential enforcement action over alleged violations of securities laws related to its IMX token. The primary concern centered around whether the token was marketed or sold as an unregistered security when Immutable conducted its 2021 token sale, which raised at least $12.5 million.

Another point of inquiry was the company's disclosures about pre-launch investments, including financial backing from Huobi Ventures. Immutable, however, consistently refuted the SEC’s claims, arguing that IMX does not meet the criteria of a security under US law. The company called the regulator’s approach an overreach, echoing broader industry frustrations with unclear crypto regulations in the United States.

On Tuesday, Immutable hailed the SEC’s decision as a major victory not just for its own ecosystem but for the broader Web3 gaming industry and digital ownership rights. CEO James Ferguson stated that the ruling reaffirms the company's compliance efforts and strengthens confidence in blockchain-based gaming platforms.‍

IMX Token Surges After Announcement

Following the news, the price of IMX, the native token of the Immutable ecosystem, surged 15% within hours—marking its highest level since March 3. This rally came after the token had previously dropped to $0.46 on March 11.

As of the latest CoinMarketCap market data, IMX is trading at $0.681, reflecting an 8.06% gain in the past 24 hours and a 17.78% increase over the past week. The token's trading volume has also climbed, currently valued at approximately $120 million.