US SEC Clears Immutable, Dropping The Investigation Without Taking Action
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
The US Securities and Exchange Commission (SEC) recently cleared the Web3 gaming platform Immutable — one among many crypto-related companies that have been investigated over the past few years.
The regulator officially ended its investigation without taking any action, according to the platform’s statement, allowing Immutable to declare this as a win for Web3 gaming.
Why Was The SEC Targeting Immutable?
Immutable is a well-known firm in the Web3 gaming sector, best known for its Ethereum Layer-2 solution ImmutableX. According to the firm, the SEC’s decision to drop the case effectively closes the chapter on a Wells notice that it received in late 2024, which the SEC usually uses as a prelude to enforcement.
At the time, the SEC’s actions indicated that it saw a potential securities case tied to the firm’s token sale, held in 2021. However, Immutable strongly objected to this approach from the start, pointing out that the SEC usually enters months-long discussions before it issues a Wells Notice.
Now that the matter was put to rest, Immutable’s co-founder and acting president, Robbie Ferguson, said that the company is pleased that the SEC has concluded its investigation. Being cleared is a big step forward for the firm, but also for the crypto and gaming industries.
A spokesperson said that the regulator sent a termination letter without explaining its reasoning, and Immutable did not request it. Instead, Immutable believes that the SEC had decided to drop the case after reviewing the documents that the company submitted in response to the notice.
From the start, the SEC seemingly focused on the launch and private sales of the IMX token back in 2021, apparently taking issue with the investment terms’ description. However, Immutable argues that it did not violate any laws or rules, and it was ready to fight the claims that it did, if needed.
But, even though the SEC has withdrawn, the matter might not be over entirely, as Rosen Law Firm is still trying to build a class-action case regarding the token sale. Even so, Immutable says that it is not worried about this. Its main concern was the SEC, and the removal of the probe will also eliminate a major roadblock for game developers looking to enter Web3. The legal risk stopped studios from entering, but with clearer rules incoming, that long-time barrier will soon come down.
