SEC closes Immutable probe after Wells notice

The U.S. Securities and Exchange Commission (SEC) has closed its investigation into Immutable, the Web3 gaming firm behind Ethereum (CRYPTO:ETH) layer-2 Immutable X, without finding wrongdoing.

Immutable (CRYPTO:IMX) confirmed the SEC’s termination letter in a March 25 statement, calling it a “significant milestone” for crypto and gaming industries seeking regulatory clarity.

The probe began in November 2023 after Immutable received a Wells notice, signaling potential enforcement action over its 2021 IMX token sales.

The SEC had questioned a blog post alleging inaccuracies in the token’s pre-launch pricing and exchange terms.

Immutable maintained confidence in its compliance, and the SEC’s decision to drop the case aligns with broader shifts under President Donald Trump’s administration, which has scaled back crypto enforcement.

The SEC has recently ended investigations into OpenSea, Robinhood, Uniswap Labs, and Gemini, and dropped lawsuits against Ripple (CRYPTO:XRP), Coinbase, and Kraken.

“This marks a significant milestone for the crypto industry and gaming as we advance towards a future with regulatory clarity,” stated Immutable’s president, Robbie Ferguson.

However, a class-action lawsuit filed by the Rosen Law Firm cites the Wells notice, alleging securities violations tied to IMX’s offering.

Immutable’s spokesperson dismissed concerns, emphasising the firm’s focus on advancing Web3 gaming.

Immutable highlighted the $100 billion in-game purchases market as a key opportunity for tokenisation, noting regulatory clarity could attract major gaming studios hesitant to enter due to compliance risks.

While the SEC’s closure removes immediate pressure, the lawsuit underscores ongoing legal uncertainties for crypto firms.

The outcome reflects evolving regulatory dynamics, where Trump’s pro-crypto stance contrasts with prior enforcement-heavy policies.

At the time of reporting, the Immutable (IMX) price was $0.6757.