After OpenSea investigation, Magic Eden CEO: Happy to see regulations becoming clearer

The SEC's regulatory spotlight has recently shifted from exchanges to the NFT market, with the SEC initiating investigations into certain NFT sales that may be defined as securities. In response to the investigation involving OpenSea, Jack Lu, CEO of another NFT trading platform, Magic Eden, expressed shock in an interview but also stated that he is optimistic if this action can bring a clearer regulatory framework.

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Although as early as 2022 the SEC had investigated NFTs for suspected securities violations, the recent enforcement actions have revealed a new regulatory direction: the SEC has begun scrutinizing NFT trading platforms, not just NFT creators.

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Earlier, OpenSea teamed up with the advocacy group Stand with Crypto, backed by a16z and Coinbase, to provide six million euros for creators' defense. It can be said that platforms believe the industry is gearing up for a long-term battle with the SEC.

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As the premier NFT trading market today, Magic Eden CEO Jack Lu, in an interview, expressed shock over the investigation into OpenSea, stating, "It all happened very suddenly." He also mentioned that Magic Eden has not received any notice from the SEC thus far. However, the recent split of Magic Eden into U.S. and international versions is seen as the platform's preparation for potential regulatory risks it may face.

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Response to SEC's OpenSea Investigation, Magic Eden CEO: Welcoming Regulatory Clarity

While Magic Eden is not currently in the SEC's spotlight, Jack Lu acknowledges that lawsuits against OpenSea could have a broad impact on the cryptocurrency field. Compared to exchanges or cryptocurrency issuers, regulatory bodies have relatively not delved into the NFT sector. However, he also stated, "If this makes industry compliance clearer, I welcome that."

Jack Lu also mentioned that regardless of what happens with OpenSea, Magic Eden's operations will continue to cooperate with regulatory bodies to ensure everything runs in the direction regulators desire. He said, "Our general principle is that we want to be good participants and truly maintain compliance within the ecosystem."

When asked if Magic Eden is prepared to remove NFTs that the SEC may deem securities from the platform, Jack Lu expressed opposition. "Many things depend on the nuances of the case and the actual circumstances," he said, adding, "Applying assumptions to future situations doesn't make much sense."

After the launch of Magic Eden Wallet, they also introduced the ME token, stating that the token will power cross-chain transactions. Perhaps in the future, we can observe whether Magic Eden's business will gradually shift towards cross-chain activities.

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