OpenSea is urging U.S. regulators to formally confirm that NFT marketplaces should not fall under federal securities laws as either exchanges or brokers.
The platform made its case in a detailed letter to SEC Commissioner Hester Peirce, who leads the agency’s Crypto Task Force.
OpenSea’s general counsel Adele Faure and deputy general counsel Laura Brookover stated that classifying NFT marketplaces under traditional financial regulations would be a stretch.
They wrote in the 9 April 2025 letter,
“Classifying OpenSea and similar NFT marketplaces as securities exchanges or brokers would be regulatory overreach,”
Source: SEC
Their central argument hinges on the legal definitions under U.S. securities law.
OpenSea is calling on the SEC to issue informal guidance to clarify the agency’s stance.
In the letter, Faure and Brookover wrote,
“We ask the SEC to clear the existing industry confusion on this issue by publishing informal guidance. In the longer term, we invite the Commission to exempt NFT marketplaces like OpenSea from proposed broker regulation.”
They urged the Crypto Task Force to specifically address how exchange regulations apply to platforms that deal in non-fungible assets — just as the SEC recently did with stablecoins and memecoins.
In recent months, the SEC announced that certain stablecoins are exempt from transaction reporting, while memecoins are considered more akin to collectibles, not securities.
The letter highlights OpenSea’s stance that it should not be treated as a broker either, noting that it doesn’t provide investment advice, facilitate deals, or manage user funds.
The legal team argued,
“NFT marketplaces do not hold or facilitate the flow of funds or assets and thus cannot commingle them, making capital requirements and financial recordkeeping irrelevant.”
They went on to say that OpenSea shouldn’t be regulated like a trading venue such as the New York Stock Exchange.
They explained their reasoning by stating that transactions on OpenSea are executed through unchangeable smart contracts, and the platform does not fulfill the legal prerequisite of having "multiple sellers" as defined by the Exchange Act.
Rather, it functions more like a digital marketplace where users connect, discover, and sell NFTs without the platform controlling the transaction process.
This push comes just months after the SEC dropped its investigation into OpenSea over potential securities violations.
The move followed a broader shift in the agency’s approach to crypto enforcement since President Donald Trump returned to office.
Under the current administration, the SEC has dismissed several high-profile investigations into crypto firms and taken a less aggressive regulatory stance.
This includes OpenSea.
As one of his first official actions, Trump ordered the formation of a Crypto Task Force to work more closely with the industry and clarify regulatory expectations.
Faure and Brookover criticised the SEC’s previous enforcement-heavy approach.
They argued that it had created confusion, stating,
“The Division of Enforcement’s previous move to extend exchange and broker regulations to OpenSea appeared to be focused more on expanding the Commission’s jurisdiction than on addressing the particular risk profiles of NFT marketplaces.”
They urged the SEC to “let the actual issues guide the regulatory solutions” and to ensure U.S. technology firms remain competitive in the growing digital assets sector.
While Bitcoin and DeFi markets have surged, the NFT sector has not followed the same trajectory.
In 2024, NFT trading volumes and sales dropped significantly — with volumes down 19% and total sales falling by 18%, marking the weakest performance since 2020.
OpenSea, once the dominant force in NFTs, continues to advocate for regulatory clarity as the market recalibrates.
The outcome of its appeal to the SEC could influence how NFT platforms operate in the U.S. moving forward.
A 32-year-old Singaporean was arrested in Thailand for his role in a cryptocurrency scam that defrauded investors of 22.4 million baht. The scam involved a fake trading platform that tricked victims into transferring money to fraudulent accounts controlled by a criminal network.
AnaisWeChat has shut down 209 accounts involved in using AI to impersonate celebrities for fraudulent marketing, following multiple user reports. The platform removed 532 pieces of deceptive content and vowed to strengthen measures against AI-driven scams.
JoyAfter her accomplices threatened to cut off her date's fingers, forcing him to transfer $40,000 in BTC, the woman pleaded guilty. Yet, the court issued only a 30-month community corrections order, citing “exceptional circumstances.” Was gender bias a factor in this lenient sentence?
CatherineLearn the top 7 factors that influence Bitcoin cryptocurrency price and how to understand them to help you make better BTC price predictions.
AlexNigeria's EFCC arrested 792 suspects in Lagos, dismantling a cybercrime ring operating out of the Big Leaf Building, which was used for romance scams and fraudulent cryptocurrency schemes. The suspects, including foreign nationals, were found using high-tech equipment to deceive victims worldwide, primarily in the US, Canada, and Europe.
JoyTravala (AVA) surged 300% after CZ revealed Binance’s early investment and the platform’s $100 million in annual revenue. However, with AVA's price dipping nearly 15%, can Travala make a comeback and deliver a holiday miracle?
CatherineCyberKongz recently received a Wells Notice from the SEC regarding NFTs and ERC-20 tokens. The collection has been critical of the current administration's crypto stance and is now focused on advocating for clearer, more transparent regulations in the NFT space.
CatherineThe SEC has issued Wells Notices to both Unicoin and CyberKongz, accusing them of fraud and unregistered securities violations. Unicoin plans to fight the charges, while CyberKongz disputes the SEC’s claims, calling them a misunderstanding of blockchain technology.
AnaisLido has stopped new staking on Polygon, but users can withdraw staked MATIC until 16 June 2025. The move follows low adoption and Lido's strategic focus on Ethereum.
KikyoScammers are targeting crypto investors through social media platforms like YouTube, WhatsApp, and Telegram, offering fake trading advice and fraudulent investment schemes. They lure victims with fake platforms, celebrity endorsements, and manipulated interactions, leading to significant financial losses.
Weatherly