On April 10th, COINOTAG reported that NFT marketplace OpenSea has engaged with the U.S. Securities and Exchange Commission (SEC) to clarify its regulatory standing. The inquiry, made on April 9th, seeks to confirm that platforms like OpenSea should not be classified as securities exchanges or brokers. OpenSea’s legal representatives assert that the platform functions as a digital marketplace, facilitating discovery and connection among NFT buyers and sellers, rather than serving as a transactional intermediary.
This dialogue follows the SEC’s decision to pause its investigation into OpenSea’s potential infractions regarding federal securities regulations, which began in February. In tandem with these developments, recent analyses reveal that the NFT market has experienced significant declines, with trading volume and sales volume down by 19% and 18%, respectively, marking the most substantial reductions since 2020.