The U.S. Securities and Exchange Commission (SEC) has abruptly ended its investigation into Immutable, a leading Web3 gaming platform, marking a pivotal moment for the crypto industry.
The Australian firm announced the regulatory retreat Tuesday, sparking celebrations among crypto advocates and a 15% surge in its native token, IMX. This decision signals a potential shift in how U.S. regulators approach blockchain innovation.
Why the SEC Backed Down?
The SEC’s reversal follows months of speculation about its aggressive stance under former Chair Gary Gensler. Insiders suggest the agency is abandoning its “regulation by enforcement” strategy, opting instead for collaborative dialogue. Acting Chair Mark Uyeda has prioritised restructuring the SEC’s crypto approach, launching a Crypto Task Force led by pro-innovation Commissioner Hester Peirce.
Additionally, the SEC has closed multiple high-profile probes in recent weeks, including investigations into Gemini, Robinhood, and NFT firms OpenSea and Yuga Labs. This trend hints at a broader regulatory pivot, possibly influenced by political changes. Since President Donald Trump’s election, the SEC has dismissed cases against Kraken, Coinbase, and Ripple, signalling a friendlier environment for crypto firms.
IMX Token Soars 15%
Immutable’s IMX token skyrocketed to $0.74 within hours of the news, its highest price since early March. The rally erased nearly $450,000 in bearish bets against the token, according to CoinGlass data. Investors welcomed the SEC’s decision as a green light for Web3 gaming’s growth.
On the other hand, the token’s November plunge triggered by Immutable’s Wells notice contrasts sharply with its latest rebound. Back then, IMX barely reacted to the SEC warning, likely due to broader market optimism around Trump’s pro-crypto policies.
Immutable’s Year-Long Battle
Immutable first disclosed the SEC’s Wells notice in November 2023, linking it to IMX token sales in 2021. The notice warned of potential enforcement action, but the firm fiercely contested the allegations. Co-founder Robbie Ferguson hailed the dropped probe as a “win for digital ownership rights,” emphasising Immutable’s commitment to compliance.
Critics argue the SEC’s initial scrutiny reflected outdated views on crypto assets. However, the agency’s sudden withdrawal suggests regulators are reevaluating how existing securities laws apply to blockchain projects.
Web3 Gaming Tokens: Can They Reclaim Past Glory?
IMX’s rally revives hopes for a gaming token resurgence. The sector once dominated crypto markets, with IMX hitting $9.32 in 2021. Yet recent months have seen gaming tokens slump 3.65%, with trading volume plunging 33%. Analysts speculate the SEC’s move could reignite investor interest, but caution that gaming tokens often trail broader market rallies.
“Regulatory clarity unlocks innovation,” Ferguson said, outlining plans to expand digital ownership for 3.1 billion gamers. Industry watchers now await partnerships or product launches to sustain IMX’s momentum.
Unfinished Business: Other Crypto Firms Still in the SEC’s Crosshairs
Not all companies have escaped scrutiny. Unicoin remains under SEC review after receiving a 2023 Wells notice alleging fraud and unregistered securities sales. A spokesperson confirmed the firm is “in the final stages” of discussions with regulators.
Crypto.com, meanwhile, sued the SEC last year over jurisdiction disputes but later dropped the case. The exchange has not commented on its current standing with the agency. These lingering battles show the uneven progress toward regulatory harmony.
A Turning Point for Crypto
The SEC’s retreat from Immutable offers hope for an industry long starved of clear rules. Ferguson calls it “a foundation for the future of gaming,” but challenges remain. While the IMX rally reflects optimism, sustained growth hinges on broader market stability and continued regulatory cooperation.
For now, crypto advocates celebrate a rare victory that could reshape how regulators and innovators coexist in the Web3 era. As Ferguson declared, “The threat to digital ownership is over.”
