A group of blockchain advocates urged the United States Congress to clearly define NFTs in response to the SEC Wells notice to OpenSea.

A group of blockchain advocates urged the United States Congress to clearly define NFTs in response to the SEC Wells notice to OpenSea.

In this week’s newsletter, read about how thenon-fungible token (NFT)marketplace Magic Eden continues to dominate the space in trading volume, surpassing its competitors. However, the company has also faced backlash over its decision to segregate its United States-based services. Check out how a rare CryptoPunk sold for almost $1.5 million despite the market not looking good for NFTs. In other news, blockchain advocates urged the US Congress to define certain NFTs as consumer products and exempt them from securities laws.

Magic Eden dominates NFT trading volume, surpassing Blur and OpenSea: CoinGecko

Magic Eden clinched the top spot in trading volume in August, marking its sixth consecutive month in first place. The marketplace recorded a volume of $122.47 million, securing a 36.7% market share for the month.

Blue held the second spot with a trading volume of $84 million. This gave the NFT marketplace a market share of 25.4%. Meanwhile, OpenSea saw $66.5 million in trading volume in August, bringing its market share to almost 20%.

Magic Eden faces backlash over US service separation

While Magic Eden dominates the trading volume space, it also now restricts users in the US. The marketplace announced on Sept. 5 that it would launch a domain exclusive to US-based users. The company said the US version would “still have great products,” while the international domain would allow them to cook up “even more features.”

Users were unhappy with the announcement because of the perceived limitations of the US domain. One X user believes the restriction will prevent the community from making money, but they also acknowledged that the decision may be owed to the “hostile” regulations in the region.

Rare Ape CryptoPunk sells for $1.5 million amid market downturn

An Ape-themed CryptoPunk with a cap, earring and eye patch sold for 620 Etheron Sept. 5. At the time of the transaction, the amount was worth around $1.48 million.

CryptoPunk #6915, one of only 24 Ape CryptoPunks, saw even higher offers over $6 million earlier this year. As such, community members found it odd that the owner accepted a significantly lower offer.

Digital Chamber calls for Congress to address SEC actions against NFTs

A crypto advocacy organization called Digital Chamber called on the US Congress to enact legislation defining NFTs. In response to the Wells notice sent by the Securities and Exchange Commission to OpenSea, the organization asked Congress to define certain NFTs as consumer products.

The group believes that with the SEC taking a regulation-by-enforcement approach, a lack of clarity from Congress puts the industry at risk.