OpenSea urges SEC to clarify NFT market regulatory boundaries

On April 10th, according to Decrypt, NFT marketplace platform OpenSea sent a letter to the U.S. Securities and Exchange Commission (SEC), urging that NFT platforms should not be considered as securities exchanges or brokers. The SEC had previously terminated an investigation into OpenSea for alleged violations of securities laws in February.

OpenSea emphasized that it does not match trades or custody assets, but only provides a discovery and connection platform for buyers and sellers. Classifying it as a securities platform would constitute "regulatory overreach". The letter also requested the SEC to exempt NFT platforms from proposed broker rules.