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HashKey Capital Launches Asia’s First XRP Tracker Fund for Institutions

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  • XRP Tracker Fund offers regulated access to XRP for institutional investors.
  • Ripple’s strategic partnership aims to transform cross-border payments.
  • Fund could transition into an ETF, expanding institutional access.

HashKey Capital has launched Asia’s first XRP Tracker Fund, which provides regulated XRP exposure for institutional investors. The firm has partnered with Ripple to develop the fund as well as attract institutional investment into the digital asset market. The XRP Tracker Fund will monitor the market performance of XRP, the native token of Ripple’s cross-border payments platform.

XRP Tracker Fund Structure

The new fund provides investors with exposure to the XRP market without direct ownership of XRP assets. The fund mirrors the XRP, which makes it easier for institutions to add this digital asset to their investment portfolios. HashKey Capital perceives this launch as a way to merge traditional finance with digital assets.

Investors can subscribe to or redeem the XRP Tracker Fund on a monthly basis, with contributions in either cash or in-kind. HashKey Capital uses CF Benchmark’s pricing data for the fund, which demonstrates its dedication to accuracy and transparency. Moreover, the company aims to develop more regulated products to meet the increased demand for XRP-related investment products.

HashKey Capital Partners with Ripple

The partnership between HashKey Capital and Ripple increased the credibility of the project and strengthened the relationship between the two firms. The partnership seeks to develop new financial products such as tokenization, decentralized finance (DeFi) solutions, and a money market fund based on the XRP Ledger. The companies plan to combine their specialized expertise to promote innovation in digital finance.

Ripple market expansion initiatives include the implementation of the RLUSD stablecoin, and the acquisition of Hidden Road builds on this partnership. Ripple launches the XRP Tracker Fund as it pursues settlement talks with the U.S. Securities and Exchange Commission (SEC) to resolve its lawsuit. These initiatives position Ripple as a major player in the cross-border payments sector.

HashKey Capital Market Expansion

The XRP Tracker Fund is HashKey Capital’s third digital asset product after it launched Bitcoin and Ethereum exchange-traded funds (ETFs). Although the fund operates as a tracker fund, HashKey seeks to convert it into an ETF in the future. This move would offer more benefits to investors who require regulated access to XRP.

Industry experts stated that the launch will boost the institutional adoption of XRP across Asia. Hank Huang, CEO of Kronos Research, believes that the fund will attract “meaningful capital inflows” and increase market acceptance of crypto assets. The transparent regulated product strengthens the position of HashKey Capital in institutional cryptocurrency investments.

VanEck To Debut Onchain Economy ($NODE) ETF On May 14 After SEC Approval

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  • VanEck’s $NODE ETF to hold 30–60 blockchain-linked stocks across various sectors
  • Fund may invest up to 25% in crypto-related ETPs via Cayman arm
  • VanEck sets 0.69% fee for actively managed blockchain equity ETF

The U.S Securities and Exchange Commission (SEC) has granted VanEck approval to launch the Onchain Economy ETF. The fund seeks to invest in blockchain infrastructure businesses and related industrial sectors. The ETF is set to make its market debut on May 14 under the symbol $NODE.

The Onchain Economy ETF will hold 30 to 60 blockchain-related assets. These assets will be derived from multiple industries, such as crypto exchanges, miners, and data centers. Moreover, the fund plans to invest in consumer-oriented firms and asset managers that operate in the digital economy.

VanEck’s NODE ETF Structure

The fund provides investors access to digital transformation businesses that derive revenue from blockchain and crypto-related technologies. Moreover, the ETF aims to invest up to 25% of its assets in digital asset exchange-traded products (ETPs). The selection will comprise digital infrastructure companies from U.S and global markets.

The ETF will not directly hold cryptocurrencies. The fund will invest in corporations that utilize or profit from blockchain systems. These companies operate in different industries, such as hardware manufacturing, energy infrastructure, and traditional finance systems.

VanEck plans to actively manage the Onchain Economy ETF operations. Under this management approach, the fund uses market fluctuations and opportunities to adjust its asset distribution. Additionally, the ETF operates an offshore subsidiary in the Cayman Islands to fulfill the U.S. tax requirements.

The fund will charge a management fee of 0.69%. Although the ETF concentrates on blockchain infrastructure, its investment in subsidiaries will not exceed 25% of its total assets. This approach maximizes financial returns and adheres to relevant laws and taxation rules.

Increased Demand For Crypto-Based Investment Products

VanEck’s NODE ETF launch reflects the increased investor interest in blockchain and crypto-related assets. The company’s digital asset portfolio includes ETFs that track tokens such as Bitcoin and Solana. The Onchain Economy ETF provides investors with exposure to blockchain-based equities rather than direct digital asset investments.

The increased number of public crypto-related stocks fuels the rise in demand for blockchain-related ETFs. The increased interest in crypto equity exchange-traded funds (ETFs) among financial advisors confirms the market acceptance for these products. Experts predict that this trend will continue because blockchain technology plays a central role in the global digital economy.

SEC Postpones Decision on Grayscale Ethereum ETF Staking Rule

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  • SEC extends deadline to decide on Ethereum ETF staking rule
  • No public comments received on NYSE Arca’s staking proposal
  • Grayscale proposal could reshape ETF yield with staking rewards

The U.S Securities and Exchange Commission (SEC) has extended its review of the proposed rule change on Grayscale’s Ethereum ETF. The proposal aims to offer staking features to Ether assets held by the Grayscale Ethereum Trust ETF and Grayscale Ethereum Mini Trust ETF. The Commission has extended the review process to June 1, 2025.

Ethereum ETFs Proposed Rule Change

On February 14, 2025, NYSE Arca submitted the proposal to the SEC under Section 19(b)(1) of the Securities Exchange Act. The proposed amendment aims to support staking of Ether assets held by Grayscale ETFs. On March 3, 2025, the Commission issued the notice for public feedback.

The proposed rule change did not receive comments from the public at the time of the review period. The initial 45-day review period would end on April 17, 2025. However, the SEC has extended the time to evaluate the proposal past the initial deadline.

The Commission announced the extension to allow more time for staff members to analyze regulatory and operational requirements as well as market implications. The proposal raises important questions about custodial management, validator operations, and returns from staking rewards. These factors must be analyzed properly to ensure market stability and protect investors.

Grayscale seeks to improve its Ethereum ETFs through a staking feature, which is connected to Ethereum’s proof-of-stake model. This modification will allow network contributors or the funds to earn rewards, which could enhance the returns for investors. NYSE Arca filed a proposal with the SEC to implement operational changes in the ETF structure.

SEC’s Jurisdiction Over Rule Change Proposals

The SEC has the power to approve or reject rule modifications as well as extend time limits for further review processes. The commission can extend the review process to 90 days to properly evaluate complex tasks. The Commission decided to extend its review duration for the Grayscale case.

Market analysts continue to monitor the SEC’s approach on crypto-linked financial products. The outcome of the review process could influence the evaluation of future applications on staking and decentralized finance protocols. A positive outcome will determine the future of Ethereum-based investment products.

The SEC has established June 1, 2025 as its new deadline to evaluate the market effects of its actions. However, this period of evaluation does not indicate approval or rejection status but provides more time to review the complete extent of the proposal. All procedures are conducted under the federal securities laws standards.

Ripple Moves Toward SEC Resolution, XRP Price Rises Amid Legal Progress

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  • Ripple agrees to a $50 million settlement with the SEC, ending the years of legal uncertainty and triggering a strong XRP price surge.
  • XRP reached a high in April 2025, fueled by investor optimism and regulatory clarity.

Ripple is finally getting to the end of its prolonged legal battle with the U.S. Securities and Exchange Commission (SEC).

After a few years of regulatory uncertainty, Ripple has agreed to pay a $50 million settlement. This new development did not only bring relief to the company but also sparked a new level of optimism among investors, as the XRP price rallied in response to the news.

On April 11, Brad Garlinghouse spoke on FOX Business. He talked about settlement plans with the SEC and how XRP would be used to pay the $50 million penalty. He explained that the funds would go to both the SEC and the U.S. government.

This discussion comes as both parties have agreed to end their appeals, bringing the long legal fight closer to a finish. Garlinghouse later said that the crypto space is now moving beyond the SEC’s continuous regulations and heading into a new era of real institutional involvement with decentralized systems.

Background of the Ripple and SEC Dispute

The legal battle between Ripple and the SEC started when the agency claimed that Ripple sold XRP without proper registration. The company denied the claim, saying XRP is a digital currency, not something that should be controlled by the SEC. The case became important for deciding how crypto will be handled in the U.S.

In July 2023, Judge Analisa Torres gave a mixed ruling. She said selling XRP on public exchanges was legal, but selling to big investors broke some rules. Because of this, both Ripple and the SEC decided to appeal parts of the decision.

Due to all this news, Ripple’s coin, XRP, hit a new peak. On the 12th of April, XRP went up by 6.81%, ending the day at $2.1591 and doing better than most other digital assets.

Related Reading | Solana Eyes $180 If Weekly Candle Closes Above $120, Analyst Predicts




Acting SEC Chair Calls For Urgent Temporary Crypto Regulations

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  • SEC chair urges temporary relief framework to boost U.S. crypto market.
  • Uyeda emphasizes federal regulations to avoid a patchwork of state laws.
  • Blockchain tech holds the potential to revolutionize financial market transactions.

Mark Uyeda, the acting chair of the U.S. Securities and Exchange Commission (SEC), has urged for temporary crypto regulations to advance innovation in the U.S. Uyeda made these statements at the SEC’s “Between a Block and a Hard Place: Tailoring Regulation for Crypto Trading” roundtable on April 11. 

Uyeda proposed a fast-tracked, short-term regulatory framework to provide crypto firms with clear guidelines until the establishment of permanent regulations.

Uyeda pointed out the benefits of a short-term relief regulatory solution for registered and non-registered companies. Uyeda states that this temporary framework could support short-term blockchain innovation in the United States. He emphasized the need for immediate action to avoid stunted industry growth despite the challenges between regulation and innovation. 

Uyeda Calls Out State-Level Crypto Regulations

Uyeda criticized the state-by-state approach to cryptocurrency trading regulation because it creates major hurdles for businesses. Uyeda warned that such a framework could result in a “patchwork of state licensing regimes,” which further complicates the regulatory space. 

Alternatively, Uyeda proposed a federal framework that could assist crypto asset providers in their operations with tokenized securities and non-security digital assets. He believes that a standardized federal license would make it simpler for companies to overcome state-level regulatory requirements.

Regulatory Relief and Blockchain Potential

The roundtable discussion included industry leaders such as Uniswap Labs, Cumberland DRW, and Coinbase executives to examine possible regulatory directions. Uyeda requested crypto market participants to submit their recommendations on areas they deemed appropriate for exemptive relief opportunities. Such input will assist the SEC to develop short-term regulations to address the current market problems and foster innovation. 

Moreover, Uyeda discussed the potential of blockchain to transform financial markets. He believes that blockchain technology enables more efficient and reliable options to execute and clear securities transactions compared to traditional solutions. Additionally, Uyeda emphasized the blockchain’s potential to enhance efficiency in capital and liquidity through its ability to manage collateral as tokenized assets. 

Uyeda will continue to serve as the SEC chair until Donald Trump’s nominee, Paul Atkins, is sworn in. On April 10 the Senate voted 52-44 to confirm Paul Atkins as SEC chair. Uyeda took over as acting chair on January 20, 2025, after the exit of Gary Gensler. His pro-crypto position has made Uyeda a better-accepted figure in the digital asset industry, unlike his predecessor, Gensler.

Crypto Regulation Reboot as SEC Chair Champions Exemptions

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  • Acting SEC Chair Mark Uyeda proposes temporary regulatory relief to support blockchain and crypto innovation while permanent rules are still in development.
  • He warns that a fragmented state-by-state regulatory system could hinder U.S. competitiveness and backs a unified federal approach.
  • His crypto-friendly stance marks a shift from previous leadership, just as Paul Atkins is confirmed as the new SEC Chair.

SEC Chair Mark Uyeda is championing a fast-tracked, temporary regulatory framework aimed at jumpstarting innovation in the blockchain and crypto sectors before long-term policies are fully ironed out.

Speaking at the SEC’s April 11 Crypto Task Force roundtable, aptly titled “Between a Block and a Hard Place: Tailoring Regulation for Crypto Trading,” Uyeda proposed a bold, interim approach that could carve out conditional exemptions for both registered and non-registered entities.

“A time-limited, conditional exemptive relief framework for registrants and non-registrants could allow for greater innovation with blockchain technology within the United States in the near term,” Uyeda told a panel that included heavyweights from the crypto space Uniswap Labs’ Katherine Minarik, Cumberland DRW’s Chelsea Pizzola, and Coinbase’s Gregory Tusar.

Uyeda’s comments signal a shift toward a more flexible, innovation-first mindset, especially as the SEC remains entangled in debates over how to regulate a fast-evolving digital asset market. With no permanent rules in place, Uyeda argued that a temporary “exemptive relief” approach could provide immediate breathing room for innovators while the regulatory machinery grinds on toward more comprehensive rules.

This move could provide much-needed clarity for projects caught in regulatory limbo, especially those unsure whether their tokens classify as securities under the Howey Test.

One of Uyeda’s key concerns centered around the growing disparity in crypto regulation across individual U.S. states. He cautioned that without federal leadership, a fragmented “patchwork of state licensing regimes” could stifle national competitiveness and innovation.

“A favorable federal regulatory framework would ease the burden for market participants wishing to offer tokenized securities and non-security crypto assets,” Uyeda said. Instead of navigating a maze of “fifty different state licenses,” projects could operate under a unified SEC license.

Uyeda Backs Blockchain Innovation and Crypto Dialogue

Uyeda also made a clear call to action: crypto industry participants should engage directly with the SEC and help identify areas where temporary regulatory relief could unlock growth. “We welcome feedback on areas where exemptive relief could be appropriate,” he emphasized.

This invitation marks a notable departure from the SEC’s prior stance under former Chair Gary Gensler, who took a hardline approach to enforcement one that many in the industry viewed as adversarial.

Throughout the roundtable, Uyeda reaffirmed his belief in blockchain’s transformative potential within financial markets. He highlighted the tech’s capacity to enhance transparency, streamline settlement processes, and unlock capital efficiency.

“Blockchain technology offers the potential to execute and clear securities transactions in ways that may be more efficient and reliable than current processes,” he said. He also underscored how tokenized collateral could “increase capital efficiency and liquidity,” a nod to the broader DeFi and tokenization trends reshaping capital markets.

Uyeda Steps Down as SEC Chair After Pro-Crypto Push

Uyeda has served as acting chair of the SEC since January 20, stepping in after the departure of Gary Gensler. His pro-innovation and more crypto-friendly tone has been welcomed by many in the industry. However, his tenure is likely to be short-lived.

On April 10, the U.S. Senate confirmed Paul Atkins as the next official chair of the SEC in a 52-44 vote largely divided along party lines. Atkins, a former SEC commissioner under George W. Bush and perceived ally of capital market liberalization, is expected to maintain a business-friendly approach to digital assets.

Uyeda, however, won’t be leaving quietly. On March 18, he made waves by suggesting that the SEC could reconsider or even scrap a proposed rule from the Biden era aimed at tightening crypto custody standards for investment advisers.

“I have asked the SEC staff to work closely with the crypto task force to consider appropriate alternatives, including its withdrawal,” Uyeda said at the time another indication that winds of change may be blowing through the Commission.

Related | Shiba Inu Burns 16 Million Tokens Amid Crypto Market Rebound

SEC Dismisses Helium Case: Major Win for DePIN Projects

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Key Takeaways:

  • The SEC has formally dismissed all claims against Nova Labs regarding unregistered securities.
  • Helium’s token distribution model (HNT, IOT, MOBILE) is now clearly affirmed as non-securities.
  • This verdict sets a major precedent for crypto-driven infrastructure initiatives like DePIN.

In a breakthrough for blockchain-based infrastructure, Helium’s founding organization, Nova Labs, has won decisively against the U.S. Securities and Exchange Commission.

The regulator has formally abandoned its accusations that the company sold unregistered securities, a charge focused on Helium’s distribution of its token and sale of hotspot devices.

The SEC’s dismissal with prejudice of the case against them ensures these charges cannot be re-filed.

It marks an important regulatory turning point, particularly for decentralized physical infrastructure networks (DePINs), which are increasingly important to closing the digital divide.

Nova Labs can finally proceed with confidence, unshaded by the shadow of regulation that fell upon them with the initial filing.

This is the turning point in the legal evolution of crypto that clarifies that incentivized token models applied to community-based infrastructures are not per se securities under the company definitions.

However, HNT, IOT, and MOBILE tokens are validated to be genuine instruments of distributed growth and not investment contracts.

SEC Shifts Stance on Blockchain Innovation Legality

Additionally, the timing on this legal reversal is significant. The first lawsuit was filed during a U.S. Securities and Exchange Commission leadership transition, and its political motivation is called into question.

Yet under this administration, the SEC has not just retreated but essentially sanctioned a model whereby public involvement in networking is hailed as an innovation, not securities fraud.

This decision demonstrates an increased awareness among regulatory institutions regarding the nature of blockchain networks.

Helium’s tokens are not like traditional securities because they are acquired by offering real-world services, network coverage through equipment rather than investment speculation.

Analyst Maya Lin, ChainMarkets Insights’ senior researcher, stated that this decision “opens a new chapter for DePINs, where utility tokens receive legal legitimacy and builders can move forward without fear.”

Nova Labs is finally able to refocus its efforts on expanding The People’s Network, its user-powered and decentralized wireless infrastructure project.

Legal issues out of the way, the way is open to expand its mission: bringing people affordable and reliable connectivity, powered by contributors around the world.

A Green Light for the Future of DePIN

However, for a community founded on grassroots action and peer-driven connectivity, the dismissal is more than legal vindication; it is an ignition of momentum.

In resolving the legal ambiguity surrounding its vision, Helium re-establishes its leadership position in decentralized infrastructure innovation.

The victory also serves as a precedent. It will probably be used as an authoritative precedent by future blockchain projects trying to navigate U.S. regulatory waters.

As governments around the world are reviewing their crypto architectures, Helium’s model can potentially act as an exemplar on how to balance effectively innovation, participation, and compliance.

As the U.S. Securities and Exchange Commission recedes into the distance, the Helium community continues to move forward, lighter, legitimized, and more dedicated than ever to transforming how the globe is connected.

Related Reading | Bitcoin Faces Resistance After 2.5-Month Correction Phase Persists

XRP Risks 40% Drop if $2 Support Level Fails to Hold

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  • XRP is testing the $2 level amid a 46% drop in trading volume to $4.08B.
  • Head-and-Shoulders pattern signals risk of 40% drop to $1.20 if $2 fails.
  • Derivatives data shows $9.57M liquidated; open interest rose 2.84% to $3.13 billion.

XRP’s price continues to face pressure at the $2 threshold, a level that now holds critical importance for its short-term direction. On Friday, the asset briefly dipped to $1.90 before recovering to trade back at $2.00. Despite the rebound, daily trading volume has dropped by 46%, down to $4.08 billion—signaling weakening investor interest.

Rising global economic uncertainty and renewed tensions from the ongoing US-China tariff situation have added to the challenges facing the overall crypto market. These outside pressures have made it difficult for XRP to benefit from recent positive developments, including progress in its legal case with the U.S. Securities and Exchange Commission (SEC).

Meanwhile, a widely followed technical pattern on XRP’s chart is raising further concern. Analyst Ali Martinez recently posted on X that “$XRP appears to be retesting its breakout zone before the trend continues!” In the chart he shared, the cryptocurrency is showing a Head-and-Shoulders pattern—a setup that often suggests a potential reversal in price direction.

XRP Technical Structure Faces Critical Moment

The Head-and-Shoulders pattern began with a left shoulder near $2.60, peaked at $3.60, and formed a right shoulder back at $2.60. After dropping below the neckline at $2.04, XRP declined to $1.80 before recovering slightly. If the price fails to stay above $2, it could trigger further selling pressure and lead to a fall toward $1.20. That would represent a 40% drop from its current level.

XRP 12
Source: Ali_Charts

However, the 200-day Exponential Moving Average (EMA) is offering support at $1.94. If XRP closes above $2 on the daily chart, it would suggest some strength in its technical structure and might encourage renewed buying. If that happens, a move toward $2.25 could follow, which is the area where the 50-day and 100-day EMAs intersect.

Meanwhile, the Relative Strength Index (RSI) has risen from near-oversold levels to 44. However, it remains below a descending trendline from its yearly high of $3.39. For a sustained rally, the cryptocurrency must break above this trendline. Until then, the trend remains under pressure, and gains may be limited.

XRPUSD 2025 04 11 15 39 11
Source: Trading View

Derivatives Data Reflects Market Uncertainty

Recent data from derivatives markets shows that traders are cautious. In the past 24 hours, XRP saw total liquidations of $9.57 million. Long positions lost $5.28 million, while short positions accounted for $4.29 million. This suggests that traders betting on price increases suffered greater losses than those expecting a decline.

At the same time, open interest in XRP derivatives increased by 2.84% to reach $3.13 billion. This rise may indicate growing capital inflows and slightly improved sentiment, even as price action remains uncertain.

xrp 9
Source: Coinglass

If XRP holds above $2 and breaks through resistance levels, it may resume its upward move toward $2.60 and $3. If not, the risk of a steep decline to $1.20 remains a serious possibility.

Related Readings | SEC’s New Crypto Disclosure Rules: Key Compliance Tips for Issuers’ Legal Risks

SEC’s New Crypto Disclosure Rules: Key Compliance Tips for Issuers’ Legal Risks

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Key Takeaways

  • The SEC is intensifying crypto disclosure scrutiny, preparing detailed guidance for future changes if cryptocurrencies are classified as securities.
  • The Crypto Task Force, initiated by Acting Chairman Mark T. Uyeda, is central to developing a clearer regulatory and disclosure framework.
  • Issuers in the crypto space must tailor detailed, project-specific disclosures aligned with federal securities law when offering or registering assets.

The Securities and Exchange Commission (SEC) is setting the stage for potentially earth-shattering changes in the way that crypto-related firms disclose businesses, technologies, and risks.

Although the regulator has not formally designated all crypto assets as securities, it is aggressively pushing firms towards disclosure regimes, treating them as securities just in case.

In its latest statement released by the Division of Corporation Finance, the SEC noted the importance of increased transparency in disclosures under the Securities Act of 1933 and the 1934 Exchange Act with respect to crypto offerings.

The revisions offer guidance to companies associated with networks, apps, or digital assets regardless of whether or not the tokens are being used in investment agreements.

The Division made clear that companies should make disclosures that are commensurate with their individual business models, types of crypto exposure, and the risk to investors.

Technological Milestones Propel Crypto Industry Growth

They should include customized narrative explanations of operations, technological development milestones, network features, and the role played by any related digital asset in the company’s operations.

The new SEC perspective affects firms that are filing documents such as Form S-1, Form 10, Form 1-A, and Form 20-F.

It is not bureaucratic checking boxes; companies will need to describe how their token operates in its environment, who controls it, how secure it is, and if its code has been audited. None of this is optional anymore.

Acting Chairman Mark T. Uyeda’s establishment of the Crypto Task Force was an important step toward providing the Commission with internal expertise regarding this fast-moving industry.

The task force is already having an impact on the way the Division of Corporation Finance describes expectations, guidance that can inform a more unified compliance trajectory for crypto companies.

SEC Focuses on Risk Hedging and Pricing

Most importantly, the disclosure focus is not on overall blockchain principles but on the particular, practical uses related to an enterprise’s operations.

However, the SEC is interested to know how firms price, hedge against risk, and conform to current financial regulation, including any implications under anti-money laundering or commodity law.

Analyst Jordan Reiss from Frontier Compliance Insights stated that this is “a clear indication the SEC is establishing jurisdiction in gray areas,” ready to hold issuers responsible even prior to official classification of numerous assets.

If your company has crypto, either as main functionality or as an investment vehicle, you’re under notice to tidy up your filings.

The issuers should explain how the token functions as an asset class: its rights and entitlements, its liquidity, its transferability, and if it can be burned or staked.

Disclosure regarding who governs upgrades to the platform, validates transactions, and controls the supply is similarly important to investor risk and the integrity of the market.

Nonetheless, under this direction, the SEC is not quite banging the gavel, but it’s certainly raising it.

Related Reading | Crypto Whales Are on a Buying Frenzy – Is a MASSIVE Bitcoin Price Surge Coming?

OpenSea Fires Back at SEC: We’re Not a Securities Exchange

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  • OpenSea argues NFTs shouldn’t be regulated as securities because they’re unique, personal items rather than investment vehicles.
  • OpenSea positions itself as a marketplace like eBay, not a securities exchange, stating trades execute outside their platform.
  • Despite the SEC closing its investigation, OpenSea’s letter may strategically prepare for future regulatory challenges.

OpenSea urges the SEC to exclude NFT marketplaces from regulation under federal securities laws. In the letter addressed to SEC Commissioner Hester Peirce, the platform argued that the majority of NFTs are unique and are acquired for personal use, not investment purposes, and shouldn’t be treated as securities.

Secondly, it doesn’t fall under a Securities Exchange, as it doesn’t host multiple buyers and sellers of the same asset or implement non-discretionary methods for order execution (like a trading facility or rules). OpenSea also doesn’t execute trades or conduct transactions via smart contracts. The platform, while comparing itself to eBay rather than NASDAQ, asserted that users list and negotiate, but execution happens elsewhere.

OpenSea
Source: Cryptothedoggy

Notably, the United States Securities and Exchange Commission (SEC) had officially closed its investigation into OpenSea, as confirmed by Devin Finzer, in a Feb. 21 post on X. The scrutiny into OpenSea began in August 2024, when the regulator issued a Wells notice, indicating that it was considering enforcement action over alleged trading of unregistered securities in the form of NFTs.

Even though the investigation has since been deemed closed, the legal status of NFTs continues to be ambiguous under current US securities law. Also, Paul Atkins has just been confirmed for a Senate vote to chair the commission. Although he is seen as pro-crypto friendly by a majority, others are still cautious of his outlook and approach towards the industry.

OpenSea’s Strategic Legal Positioning

By reiterating, OpenSea could be clarifying its stance preemptively in case of being sued again. Additionally, the letter could be a part of building a public record, emphasizing its non-securities framework, which can be useful in future litigations or even lobbying.

The recent reopening of the Ripple case, despite not being related to NFTs directly, could mean that “closed investigations” are never truly closed in the eyes of the SEC.

Ultimately, it depends on the lawmakers to bring clarity surrounding NFTs. Until such clarity is established, platforms like OpenSea and the broader crypto community have every right, and the responsibility, to voice their concerns and seek regulatory frameworks that reflect the unique nature of blockchain-based technologies.