On April 9, 2025, OpenSea – the largest NFT trading platform in the world – strongly pushed back against the U.S. Securities and Exchange Commission (SEC), asserting that NFTs are not securities and platforms like OpenSea should not be regulated as stock exchanges. In the context of the NFT market struggling and the SEC showing signs of leniency, does this move open up opportunities for NFTs to regain their luster, or is it merely a desperate legal battle?


OpenSea Strikes Back: 'We Are Not a Stock Exchange!'

On April 9, 2025, #OpenSea sent a letter to SEC Commissioner Hester Peirce, requesting clarification that NFT exchanges should not be regulated as stock exchanges or broker-dealers. This move comes after the SEC halted a lengthy investigation into OpenSea for suspected securities law violations – a decision announced two months ago.


OpenSea argues that it does not meet the legal definition of an exchange: it does not directly execute transactions, does not act as an intermediary, does not provide investment advice, does not negotiate agreements, and does not custody customer assets. The company describes itself as a 'digital marketplace,' where users can freely explore, connect, and trade NFTs, rather than a 'trading floor' in the traditional financial model. OpenSea emphasizes that the SEC labeling them as a stock exchange or broker exceeds legal authority.


Furthermore, OpenSea calls on the SEC to completely exempt NFT platforms from the proposed broker regulations, aiming to create a legal precedent for the entire industry. If successful, this could allow NFT platforms to operate more freely, avoiding heavy legal obligations.


Context: SEC Softer Under Political Pressure

OpenSea's letter was sent in the context of #SEC being more open towards the crypto industry. In the past two months, the SEC has suspended several major investigations targeting crypto companies, including OpenSea. This change is believed to be influenced by the policy strategy of President Trump, who actively sought votes from the crypto community ahead of the 2024 election with commitments like 'all remaining Bitcoins will be mined in the USA.' However, some skeptics argue that Trump may just be exploiting the digital asset frenzy for political and financial gain, rather than genuinely caring about the sustainable development of the industry.


The NFT Market: 'Gasping' After Its Golden Age

Although Bitcoin has grown significantly ($84,900, despite a 12% drop in Q1/2025) and DeFi is booming (TVL up 50% in 2024, according to DefiLlama), the market #NFT is experiencing a severe downturn. In 2024, NFT trading volume decreased by 19%, and the number of transactions fell by 18%, hitting the lowest level since 2020. This decline stems from investors losing faith in digital assets related to collectibles, art, and gamification, following a series of 'pump-and-dump' schemes and failed projects (such as the MELANIA memecoin dropping 96%, according to previous articles).


OpenSea, once a 'giant' with monthly trading volumes reaching $2.5 billion in 2021 (according to Dune Analytics), is now also heavily affected. The decline of NFTs is not just a market issue but also relates to legality: if deemed securities, platforms like OpenSea may face strict regulations, exacerbating the situation.


The NFT Identification Problem: Significant Legal Consequences

The confrontation between OpenSea and the SEC revolves around the core question: Are NFTs securities? If the SEC decides to view NFT platforms like OpenSea as stock exchanges or brokers, the consequences will be severe:



  • NFT projects may be shut down for failing to meet legal requirements (such as financial reporting, registration with the SEC).


  • Platforms like OpenSea will face heavy legal obligations, including compliance with anti-money laundering (AML) laws and KYC, increasing operational costs.


  • The creative space of the NFT industry – which relies on decentralization and freedom – is at risk of being 'suffocated' by outdated legal frameworks that do not align with new technology.



Conversely, if the SEC accepts OpenSea's proposal, it will mark a significant milestone. Exempting NFT platforms from broker regulations will spark a wave of legalization, helping the NFT industry stabilize and develop sustainably. This is particularly important as investors and developers (builders) are feeling lost after a long period of adjustment.


Impact on the Crypto Market

  • Increasing confidence in NFTs: If OpenSea succeeds, confidence in NFTs may be restored, helping trading volumes recover (estimated to increase by 10-15% in the next 6 months, according to Rarible Analytics).


  • Positive signals for crypto: The SEC's softer stance and support from Trump could attract institutional capital ($5.2 trillion in the next 5 years, according to BCG), helping the crypto market recover after a 11.65% drop in market capitalization ($2.88 trillion) in Q1/2025.


  • Opportunities for OpenSea: As the leading platform with 1.5 million users (according to OpenSea), escaping securities regulations will help OpenSea strengthen its position and compete with rivals like Blur and Rarible.



Conclusion: Do NFTs Have a Chance to Revive?

The legal battle between OpenSea and the SEC is a turning point for the NFT industry. With the sharp argument that NFTs are not securities and OpenSea is merely a 'digital marketplace,' the company is fighting to protect the creative space of the industry. Amid the NFT market downturn (a 19% drop in trading volume) and the SEC's leniency, this move could open up opportunities for NFTs to regain vitality. Will NFTs be recognized as an independent asset class, or will they be stifled by outdated laws? The answer will shape the future of the industry in the coming months.


Risk warning: Investing in NFTs carries high risks due to price volatility and legal uncertainty. Please consider carefully before participating.