EddieJayonCrypto
10 Apr 25
NFT marketplace OpenSea has requested clarification from U.S. regulators, asserting that it and similar platforms should not be considered securities exchanges or brokers. This request comes after the SEC dropped a probe into OpenSea's alleged violation of federal securities laws. OpenSea's general ...
NFT marketplace OpenSea has requested clarification from U.S. regulators, asserting that it and similar platforms should not be considered securities exchanges or brokers. This request comes after the SEC dropped a probe into OpenSea's alleged violation of federal securities laws. OpenSea's general counsel and deputy general counsel urged the SEC to issue informal guidance affirming that NFT marketplaces are outside the scope of broker-dealer and exchange rules. OpenSea argues that it does not meet the legal definition of an exchange and describes itself as a digital bazaar rather than a trading floor. The company also pushed back on being labeled as a broker, stating that it does not provide investment advice, negotiate deals, or custody customer assets. Additionally, OpenSea has asked the Commission to exempt NFT marketplaces from proposed broker regulation. This development follows the SEC's decision to shelve investigations into crypto companies, including OpenSea, amid a broader policy pivot under the previous administration.
Despite Bitcoin's rally and the growth of the DeFi sector, NFTs have experienced a decline in trading volumes and sales counts since 2020, with a 19% drop in trading volumes and an 18% decrease in sales compared to the previous year.