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OpenSea Requests SEC Exemption for NFT Marketplaces from Exchange Regulations

On April 9th, OpenSea has officially requested the Securities and Exchange Commission (SEC) to exempt NFT marketplaces from exchange regulations. This move comes in light of a broader policy shift towards crypto-friendly approach under President Trump’s administration.

In a letter addressed to Commissioner Hester Peirce, who heads the SEC’s Crypto Task Force, OpenSea’s legal team has outlined their case for regulatory exemption. According to the company, they don’t fit the legal definition of an exchange as they don’t execute transactions between buyers and sellers.

The request is particularly significant given the recent downturn in the NFT market. Trading volumes have plummeted by a staggering 19% in 2024 compared to the previous year. Sales counts also dropped by 18%. In light of these dismal figures, regulatory clarity could be crucial for companies like OpenSea that operate within this space.

OpenSea’s legal team is pushing the Crypto Task Force to provide guidance on NFT marketplaces similar to recent statements issued regarding memecoins and stablecoins. They believe it would be beneficial for the regulator to address how exchange regulations apply to non-fungible assets, such as those traded on OpenSea.

The outcome of this request will be closely monitored by other NFT marketplaces and the broader crypto industry. It could establish a crucial precedent for digital collectibles and their trading platforms in the United States.

OpenSea’s push for regulatory exemption comes amidst an ongoing dialogue between regulators and the crypto sector, which is expected to shape the future of cryptocurrency regulation in the US.

Source: https://blockonomi.com/opensea-requests-sec-exemption-for-nft-marketplaces-from-exchange-regulations/