Catenaa, Monday, April 14, 2025- Leading NFT marketplace OpenSea has urged the Securities and Exchange Commission (SEC) to clarify that NFT platforms should not be classified as exchanges or brokers under federal securities laws.
In a letter sent Wednesday (09) to SEC Commissioner Hester Peirce, who chairs the agency’s newly formed Crypto Task Force, OpenSea General Counsel Adele Faure and Deputy General Counsel Laura Brookover argued that extending traditional exchange and broker regulations to NFT platforms like OpenSea is “superfluous” and risks stifling innovation.
The appeal follows the SEC’s February decision to drop an investigation into OpenSea, part of a broader regulatory pivot under President Donald Trump’s administration.
One of Trump’s first directives was for the SEC to re-evaluate crypto oversight and work directly with the industry on tailored rules.
“The Commission’s past enforcement agenda has created uncertainty,” the letter states.
“We urge the Commission to remove this uncertainty and protect the ability of US technology companies to lead in this space.”
OpenSea’s legal team asserted that NFT platforms do not hold or transfer customer funds, nor do they recommend investments or execute trades on behalf of users—key criteria for broker or exchange classification. Additionally, the platform relies on smart contracts, not intermediaries, to facilitate transactions.
OpenSea also rejected the notion that NFT platforms qualify as “Trading Facilities” under the Exchange Act, arguing they do not meet legal thresholds like the “multiple sellers” requirement.
The Crypto Task Force has recently engaged other industry players, including staking ETF proponents, as it drafts crypto-specific regulatory guidelines.
