Last month, OpenSea received a notice from the SEC Wells that while regulators had previously taken enforcement action against NFT projects, the disclosure against OpenSea shows that the SEC has begun to review entities that provide trading platforms for NFTs, rather than just the entities that originally provided those platforms. Magic Eden has not yet been a target of the SEC's attention, but Lu, chief executive, acknowledged that the OpenSea lawsuit could have wide-ranging implications for the cryptocurrency space, which is relatively untouched by regulators compared with exchanges or cryptocurrency issuers. "Regulatory ambiguity is basically inevitable," Lu said. "If this incident brings more clarity to the space, I welcome that."