SEC Drops Investigation into Immutable, Signaling a New Era for Web3 Gaming

Immutable, the developer behind the Immutable X Layer-2 Ethereum scaling platform and popular Web3 games, revealed in a public statement on Tuesday that the SEC has closed its probe without pursuing any enforcement action. The news comes after the Sydney-based company disclosed in November 2024 that it had received a Wells Notice—a formal notification from the SEC staff indicating the regulator’s intent to recommend enforcement action.

The SEC’s original investigation reportedly centered on whether Immutable’s IMX token offering in 2021 violated U.S. securities laws. Like many crypto projects during the last bull market, Immutable raised funds through token sales to investors globally. Though the company is based in Australia, U.S. securities laws can apply when American investors are involved in such offerings.

At the time of receiving the Wells Notice, Immutable stated it was confident that it had complied with applicable laws and expressed its intention to cooperate with the SEC’s inquiry. After months of ongoing communication and document submissions, the Commission informed Immutable in late March that it would not be pursuing any charges.

Robbie Ferguson, president and co-founder of the company wrote on X:

The outcome is being seen as more than just a win for Immutable—it may set the tone for a thawing in regulatory tensions between crypto firms and U.S. authorities. Web3 gaming projects, in particular, have struggled under the weight of legal uncertainty, with major studios hesitating to enter the space due to a lack of clarity around how tokens and digital assets are classified.

Industry experts believe this could have a ripple effect.

“Regulatory clarity is one of the biggest barriers to adoption in blockchain gaming,” said Amy Wu, managing partner at Menlo Ventures and a longtime investor in Web3 infrastructure. “The SEC stepping back from this case sends a strong signal that it’s open to a more collaborative, forward-looking approach.”

Immutable’s infrastructure is widely used by game developers looking to incorporate NFTs and digital assets into gameplay. The company has positioned itself as a key player in what it describes as the “ownership economy” of gaming, where players can own, trade, and monetize their in-game items through blockchain technology.

With over 3 billion gamers worldwide and a multi-billion dollar market for in-game purchases, Immutable sees tokenization as a logical next step in gaming’s evolution.

The decision to drop the investigation into Immutable follows a string of similar moves under the leadership of Acting SEC Chair Mark Uyeda, who has steered the agency away from its previous enforcement-heavy stance. Earlier this year, the SEC also ended probes into Uniswap Labs, Kraken, and Coinbase without pressing charges.

The agency has since launched a Crypto Policy Task Force—led by longtime commissioner Hester Peirce—to work toward formal rulemaking and create a clear regulatory framework for digital assets. The task force has promised greater transparency, public input, and cooperation with industry leaders, in contrast to the more adversarial posture under former Chair Gary Gensler.

“The SEC appears to be moving into a new phase,” said Joseph Hall, a former SEC attorney and partner at Davis Polk. “Rather than pursuing one-off enforcement actions, we’re now seeing a shift toward structured, rules-based guidance that can give projects a clearer path forward.”

With the regulatory cloud lifted, Immutable plans to double down on growth. The company is expected to unveil a slate of new developer tools, launchpad initiatives, and ecosystem partnerships in 2025. It also continues to support games building on its Layer-2 solution, including high-profile upcoming titles from Ubisoft and Netmarble.

Immutable’s token, IMX, rose nearly 9% following the announcement, signaling renewed investor confidence in the company’s long-term prospects.

As regulators recalibrate and the Web3 gaming sector continues to mature, Immutable’s legal victory could become a case study in how blockchain firms can engage constructively with global regulators—and come out stronger on the other side.