- Australian Web3 gaming company Immutable has been cleared by the SEC, with the agency deciding not to pursue enforcement action after issuing a Wells Notice in October 2024.
- Immutable, known for developing games like Gods Unchained and recognised as the fastest-growing web3 gaming ecosystem in 2024, operates a layer 2 platform built on Ethereum.
- The SEC’s decision is part of a broader trend of dismissing crypto-related investigations following the change in administration, including cases against Ripple, Kraken, Coinbase and others.
- Co-founder Robbie Ferguson views this as a significant victory, emphasising the potential for accelerated growth and bringing more of the 3.5 billion global gamers into web3 platforms.
Australian Web3 gaming company Immutable won’t be pursued by the US Securities and Exchange Commission (SEC), despite receiving a Wells Notice late last year, according to an announcement published on Immutable’s website on March 26.
Today we are happy to report that the SEC has formally decided to end its investigation into Immutable, the IMX Ecosystem Foundation, and Immutable’s CEO. The SEC will not be taking any enforcement action.
Immutable statementThe company also used the statement to welcome the incoming administration’s move towards clearer regulatory frameworks, stating that “Constructive regulation provides certainty…”
Co-founder Robbie Ferguson said the SEC described it as an “enormous win for web3 gaming”.
Immutable Latest in Line of Cases SEC Has Dismissed
Immutable operates a layer 2 platform for building web3 games, based on Ethereum, and also runs a game development company. It was named the fastest-growing web3 gaming ecosystem in 2024, having added over 500 gaming titles and is best known for developing the games Gods Unchained and Guild of Guardians.
Immutable was issued with a Wells notice in October 2024. A Wells notice is a communication sent by the SEC to advise entities that they’re under investigation, explain the type of violations being looked into, and give them an opportunity to make a submission about the investigation.
With the changing of the guard following President Trump’s election, a number of cases brought by the SEC have recently been dismissed by the agency, including:
- Dropping its appeal in the long-running legal battle against Ripple (XRP).
- Dropping its lawsuit against crypto exchange Kraken, and Consenys, which runs Metamask.
- Dropping its lawsuit against the largest US crypto exchange, Coinbase.
- Deciding not to pursue enforcement of Gemini, Uniswap or OpenSea after issuing them with Wells notices in 2024.
Related: XRP Surges 12% as US SEC Drops Lawsuit
Issuing a Wells notice is at the discretion of SEC staff, and based on a preliminary recommendation that proceedings against a company should get underway.
When it received a Wells notice last year, Immutable called the intended SEC action “the latest in their de facto policy of regulation by enforcement”, and questioned the motivation behind its timing, which came just before the US election. The company said: “The industry desperately wants clear guidelines for compliance, and instead companies are forced to spend millions of dollars in legal fees to even get off the ground.”
Ferguson said this week that without the threat of enforcement action the company could now accelerate its efforts to grow.
There are 3.5 billion gamers in the world, and web3 solves the problem of digital ownership for them, with real utility + PMF. Overcoming this investigation was a big step to bringing them onchain, but we’re still early days.
Robbie Ferguson, Immutable co-founder
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