Aug 28 (Reuters) - The U.S. Securities and Exchange

Commission (SEC) has threatened to sue non-fungible tokens

(NFTs) marketplace OpenSea, its CEO said in a post on social

media platform X on Wednesday.

"OpenSea has received a Wells notice from the SEC

threatening to sue us because they believe NFTs on our platform

are securities," said OpenSea Co-founder and CEO Devin Finzer.

A Wells notice is a formal declaration that SEC staff intend

to recommend an enforcement action.

The SEC does not comment on the existence or nonexistence of

a possible investigation, a spokesperson for the securities

regulator said in an emailed statement to Reuters.

The SEC and the crypto industry have locked horns in recent

years over their divergent views on whether crypto assets

classify as securities and should be regulated similarly.

"We're shocked the SEC would make such a sweeping move

against creators and artists. But we're ready to stand up and

fight," Finzer added.

Crypto companies have accused the regulator of overreach and

violating its jurisdiction, while the SEC has alleged the

industry is flouting securities laws that are designed to

protect investors and other market participants.

Prominent crypto firms, including exchange Coinbase

and retail trading app Robinhood, have repeatedly

called for clearer regulation and new laws to accommodate the

fast-growing sector.

An NFT is a digital asset that exists on a blockchain, which

serves as a public ledger, allowing anyone to verify the asset's

authenticity and ownership. NFTs have a unique digital signature

and cannot be reproduced.