OpenSea Asks SEC for Clarity on NFT Marketplace Rules
OpenSea is requesting U.S. regulators to clarify that NFT marketplaces should not be classified as securities exchanges or brokers. This request follows the SEC's decision to end its investigation into OpenSea for potential violations of federal securities laws. In a letter, OpenSea's legal team argued that classifying NFT marketplaces as securities exchanges would constitute regulatory overreach, asserting that they do not execute transactions or act as intermediaries. OpenSea emphasizes its role as a digital bazaar for discovering NFTs rather than a traditional trading platform. The company also opposes the broker designation, stating it does not provide investment advice or manage customer assets. Additionally, OpenSea seeks an exemption from proposed broker regulations for NFT marketplaces. Despite a surge in Bitcoin and DeFi growth, NFT trading volumes and sales have significantly declined, with 2024 showing the weakest levels since 2020, including a 19% drop in annual trading volumes and an 18% decrease in sales compared to the previous year.
