OpenSea team asks the SEC to confirm that there is no authority to regulate NFT marketplaces

Two months earlier, the SEC dropped its investigation against OpenSea

10.04.2025 - 15:50

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What’s new? The team of the OpenSea non-fungible token (NFT) marketplace has asked one of the five US Securities and Exchange Commission (SEC) commissioners, Hester Peirce, known as crypto mom, to issue informal guidance confirming that NFT marketplaces are not regulated in a manner similar to exchanges or brokers.

OpenSea appeal

What else is known?

“Classifying OpenSea and similar NFT marketplaces as securities exchanges or brokers would be regulatory overreach,” wrote OpenSea’s general counsel Adele Faure and her deputy, Laura Brookover.

The company argues that it does not meet the legal definition of an exchange under US securities laws because it does not execute transactions or act as an intermediary.

OpenSea describes itself as a digital bazaar rather than a trading platform, “allowing people to discover NFTs and connect with buyers and sellers” rather than organizing trading in the traditional sense.

The company also objected to being classified as a broker because it does not provide investment advice, negotiate trades, or hold client assets.

The request comes after the SEC dropped its investigation against OpenSea in February following a change in leadership for alleged violations of federal securities laws.

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Despite the growth of the broader crypto market and DeFi sector, NFTs have remained in decline over the past few years. In 2024, trading volume and number of sales fell by 19% and 18% respectively and were at their lowest levels since 2020.

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