The company Ozone Networks, which operates the OpenSea platform, has sent an official letter to the U.S. Securities and Exchange Commission (SEC) requesting clarification on the status of NFT marketplaces. In its appeal, the company emphasized that these platforms do not fall under the definitions of exchanges or brokers.
This is reported by Business • Media
It is worth noting that during the previous SEC leadership, there was an attempt to extend jurisdiction over the NFT segment, particularly with the OpenSea marketplace coming under the regulator’s scrutiny. However, following the dismissal of former SEC Chair Gary Gensler, the investigation into the platform was halted.
OpenSea’s Demands to the SEC
In their letter to the chair of the SEC’s cryptocurrency working group, Hester Peirce, representatives of OpenSea stated that even if some NFT transactions could be classified as investment contracts, this does not justify their designation as exchanges and brokers. The company argues that:
- The platform does not aggregate multiple sellers of a single product, as each token has only one seller — its current owner;
- OpenSea does not control or execute NFT transactions that are conducted on the blockchain through smart contracts.
Position on NFT Regulation
Furthermore, OpenSea emphasized that it does not perform broker functions, as it does not offer investment advice, does not promote NFTs, does not exercise custody over assets, does not participate in transactions, and does not control users’ tokens. In this regard, the company proposed that the SEC issue an appropriate bulletin or guidance, as well as exempt marketplaces from further oversight.
“NFTs are collectibles and art; they do not fall under the category of securities,” stated project leader Devin Finzer.