OpenSea Calls on SEC to Exempt NON-FUNGIBLE TOKEN Marketplaces from Securities Laws

Renowned non-fungible crypto token (NON-FUNGIBLE TOKEN) marketplace OpenSea has appealed to the U.S. Securities and Trading platform Commission (SEC) for a formal exemption of NON-FUNGIBLE TOKEN platforms from federal securities regulations.

In a correspondence dated April 9, OpenSea’s chief legal officer Adele Faure and deputy chief legal officer Laura Brookover reached out to SEC Commissioner Hester Peirce, who leads the agency’s Crypto Task Force.

Faure and Brookover encouraged the SEC to clarify that DIGITAL COLLECTIBLE marketplaces such as OpenSea are not classified as “exchanges” under U.S. securities law.

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OpenSea: NFT Platforms Not Exchanges Under Securities Law

OpenSea’s chief legal officer argued that platforms enabling DIGITAL COLLECTIBLE transactions do not carry out trades, serve as intermediaries, or gather various buyers and sellers for the same financial asset.

“The Commission’s previous enforcement actions have resulted in legal ambiguity,” the letter noted. “We urge the Commission to alleviate this ambiguity and safeguard the capacity of U.S. tech companies to spearhead innovation in the digital asset sector.”

This request follows the SEC’s recent efforts to define its perspective on other digital assets. On April 4, the SEC declared that specific stablecoins would be categorized as “non-securities,” exempting them from transaction reporting obligations.

Likewise, a statement from the SEC’s Division of Corporation Finance in February stated that meme coins are not classified as securities but instead digital collectibles.

Today, OpenSea sent a letter to the SEC Crypto Task Force explaining why NFT marketplaces such as OpenSea aren’t classified as exchanges or brokers under federal securities law. We also requested straightforward guidance to reduce crypto market ambiguity and foster the growth of the DIGITAL COLLECTIBLE ecosystem.…

— Laura Brookover (@laurabrooksie1) April 9, 2025

Faure and Brookover believe the Crypto Task Force should adopt a similar approach for NFTs, asserting that OpenSea and comparable platforms should not be forced to register as brokers.

They highlighted that DIGITAL COLLECTIBLE marketplaces do not provide investment guidance, possess user assets, or perform financial dealings on behalf of users.

“We request the SEC to release informal guidance to clear up confusion regarding NFTs,” they expressed. “In the longer term, we encourage the Commission to grant exemptions for NON-FUNGIBLE TOKEN marketplaces from proposed broker regulations.”

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SEC Softens Crypto Position Under Trump

This appeal arrives as the SEC, during the Trump administration, gradually retreats from the more stringent regulatory stance taken under former Chair Gary Gensler.

In recent weeks, the agency has withdrawn several enforcement actions against crypto companies, including a prior investigation into OpenSea itself.

The shift in strategy coincides with a substantial change in leadership. Former SEC Chair Gary Gensler, who had led a rigorous regulatory crackdown on the crypto sector, has stepped down. 

During his time in office, which commenced in 2021, the SEC initiated more than 100 enforcement actions against firms in the crypto arena.

Gensler’s exit happened on the same day that Donald Trump, who has indicated a more crypto-enthusiastic position, began his second term as U.S. president. Trump had previously promised to dismiss Gensler if re-elected, a commitment that seems to have influenced the SEC’s evolving regulatory attitude.

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