CoinDesk Podcast Network

UNCHAINED: If the SEC Sues OpenSea, Here's Why the NFT Platform Could Win Easily

Listen Later

NFT marketplace OpenSea received a Wells notice from the SEC. Crypto lawyer Preston Byrne explains whether Gensler’s agency has a chance to win a potential case.


The SEC’s latest enforcement action is targeting NFTs, and OpenSea is in the crosshairs. In this episode, crypto lawyer Preston Byrne joins to unpack the implications of the SEC's Wells notice to OpenSea and what it might mean for the platform and the broader NFT market. Could Section 230 of the Communications Decency Act provide a unique defense for OpenSea? Preston also dives into other recent SEC moves, including cases against Stoner Cats, Impact Theory, and more. 

Lastly, with the 2024 elections looming and political divides sharpening, is the SEC overreaching in its approach to crypto?

Show highlights:

  • Why Preston believes that the SEC will go after OpenSea for being an unregistered securities exchange
  • What the Stoner Cats case was about and why it was not a strong enforcement action, according to Preston
  • Why OpenSea's defense against the SEC may hinge on Section 230 protections for user-generated content, setting it apart from traditional exchanges like Coinbase or Binance
  • How the clear-cut promises made by Impact Theory about potential returns made their NFTs resemble securities, unlike the typical art-focused NFTs on OpenSea
  • Why Nate Chastain’s NFT insider trading case is unlikely to impact the SEC’s potential lawsuit against OpenSea
  • Whether the $4 million settlement by Dapper Labs over NBA Top Shot NFTs likely represents little relevance to OpenSea's SEC issues
  • What a Wells notice signals about the SEC's likelihood of suing OpenSea and why they might feel confident about winning this case
  • How Jonathan Mann and Brian Frye's lawsuit for clarity on NFTs as securities highlights the SEC's potentially overreaching stance in its possible case against OpenSea
  • How Trump's careful language around his NFT collection likely minimizes SEC risk by avoiding investment promises and focusing on their use as digital collectibles
  • Whether the SEC's actions could reinforce the divide among crypto voters, with Trump promising a crypto-friendly stance and Harris likely continuing a more adversarial approach


    • Visit our website for breaking news, analysis, op-eds, articles to learn about crypto, and much more: unchainedcrypto.com

    Thank you to our sponsors!

    • iTrustCapital
    • Polkadot
    • Token 2049
    • Mantle’s FBTC
    • Gemini


      • Guest

      Preston Byrne, Managing Partner at Byrne & Storm


      Unchained Podcast is Produced by Laura Shin Media, LLC. Distributed by CoinDesk.

      See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

      ...more
      View all episodesView all episodes
      Download on the App Store
      CoinDesk Podcast NetworkBy CoinDesk
      • 4.7
      • 4.7
      • 4.7
      • 4.7
      • 4.7

      4.7

      641 ratings

      More shows like CoinDesk Podcast Network

      View all
      We Study Billionaires - The Investor’s Podcast Network by The Investor's Podcast Network

      We Study Billionaires - The Investor’s Podcast Network

      3,382 Listeners

      Unchained by Laura Shin

      Unchained

      1,210 Listeners

      Real Vision: Finance & Investing by Real Vision Podcast Network

      Real Vision: Finance & Investing

      912 Listeners

      CRYPTO 101 by Bryce Paul & Brendan Viehman

      CRYPTO 101

      37 Listeners

      The Breakdown by Blockworks

      The Breakdown

      742 Listeners

      The Pomp Podcast by Anthony Pompliano

      The Pomp Podcast

      1,846 Listeners

      Thinking Crypto News & Interviews by Tony Edward

      Thinking Crypto News & Interviews

      253 Listeners

      Bitcoin News Alerts | Daily BTC News by Bitcoin News Alerts

      Bitcoin News Alerts | Daily BTC News

      613 Listeners

      What Bitcoin Did by Danny Knowles

      What Bitcoin Did

      276 Listeners

      Bankless by Bankless

      Bankless

      1,049 Listeners

      The Wolf Of All Streets by Scott Melker

      The Wolf Of All Streets

      242 Listeners

      All-In with Chamath, Jason, Sacks & Friedberg by All-In Podcast, LLC

      All-In with Chamath, Jason, Sacks & Friedberg

      10,230 Listeners

      Coin Stories with Natalie Brunell by Natalie Brunell

      Coin Stories with Natalie Brunell

      450 Listeners

      Raoul Pal: The Journey Man by Real Vision Podcast Network

      Raoul Pal: The Journey Man

      130 Listeners

      Simply Bitcoin by Simply Bitcoin

      Simply Bitcoin

      101 Listeners