On April 9, OpenSea’s legal team contacted the US Securities and Exchange Commission (SEC) to ask for clearer rules on how non-fungible token (NFT) marketplaces should be viewed under current laws.
In a letter addressed to SEC Commissioner Hester Peirce, general counsel Adele Faure and deputy general counsel Laura Brookover asked the agency to confirm that platforms like OpenSea should not be treated the same as brokers or securities exchanges.
This request followed the SEC’s decision in February to end a probe into OpenSea over possible violations of federal securities rules. The company believes its platform does not carry out trades or act as a middleman, which are the key features that usually define an exchange under US law.
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According to OpenSea, the platform is designed to help people browse and find NFTs. It lets users connect with others who want to buy or sell digital items, but does not handle the transactions itself.
Faure and Brookover wrote in the letter that it would go too far to group OpenSea and similar platforms with services meant for trading securities. They explained that OpenSea does not give investment advice, negotiate deals, or hold users’ assets.
OpenSea sees this as important not just for the company but for other platforms that offer similar services.
Meanwhile, a group of crypto firms and advocacy organizations recently called on Congress to examine how the Department of Justice (DOJ) is applying certain laws in its case against the developers of Tornado Cash. What did they say? Read the full story.
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