In today’s crypto news, Tornado Cash developer Roman Storm cautions open-source developers about the risks of retroactive prosecution, while NFT marketplace OpenSea is transitioning to a multi-asset exchange. Additionally, Ondo Finance is asking the US SEC to reconsider Nasdaq’s proposal for tokenized securities.
Roman Storm cautions open-source developers about retroactive prosecution
Roman Storm, a developer from Tornado Cash, has alerted open-source software creators, especially those involved in decentralized finance (DeFi), to the possibility of retroactive prosecution by the United States Department of Justice (DOJ).
In a post on Saturday via X, Storm questioned DeFi developers, asking: “What makes you so confident you won’t face charges from the DOJ as a money service business (MSB) for creating a non-custodial protocol?”
“If the Southern District of New York (SDNY) can bring charges against a developer for creating a non-custodial protocol, who can consider themselves safe? My case is still in progress,” he added.
The outcome of the Roman Storm case could have significant legal ramifications for open-source software development in the US, setting a troubling legal precedent for developers who currently lack protection from prosecution.
OpenSea clarifies it’s evolving to ‘trade everything’
OpenSea’s CEO Devin Finzer has dismissed the notion that the platform is shifting away from non-fungible tokens (NFTs), asserting that it is “evolving” into a comprehensive exchange for all on-chain assets.
In a recent post on X, Finzer revealed that OpenSea’s trading volume in October surpassed $2.6 billion, with over 90% attributed to token trading, marking the start of the platform’s transition to “trade everything.”
“We’re developing a universal interface for the entire on-chain economy — including tokens, collectibles, culture, and both digital and physical assets,” Finzer explained to Cointelegraph. “The objective is clear: anything existing on-chain should be tradable on OpenSea, effortlessly across any chain, while ensuring you maintain full control over your assets,” he continued.
OpenSea, the original major NFT marketplace, debuted in 2017 to facilitate the buying, selling, and trading of various non-fungible tokens. The platform remained the leading entity in the sector until early 2023, when it faced challenges from a combination of an overall NFT market downturn and the emergence of significant competitor, Blur.
Ondo Finance urges SEC to reconsider Nasdaq’s tokenized securities initiative
Ondo Finance has called on the US Securities and Exchange Commission (SEC) to postpone or reject Nasdaq’s initiative to trade tokenized securities, citing concerns over transparency and the potential for established market participants to gain an unfair advantage.
In a letter to the regulator on Wednesday, Ondo—a blockchain firm that issues tokenized representations of conventional assets—stated that without public information on how the Depository Trust Company (DTC) will manage blockchain settlements, regulators and investors cannot properly assess Nasdaq’s proposal. The DTC is the primary depository for US securities and facilitates their post-trade settlement.
While Ondo acknowledged support for Nasdaq’s move towards tokenization, it warned that “Nasdaq’s reference to non-public details suggests unequal access, which prevents other firms from fairly commenting.”
The company also pointed out that Nasdaq’s rule cannot take effect until DTC finalizes its system, suggesting that there’s no downside to delaying approval until more information becomes available. It urged the SEC to emphasize “open collaboration and transparent standards” before reaching a final verdict.
Ondo’s letter is a response to Nasdaq’s filing with the SEC dated Sept. 8, where the second-largest stock exchange proposed amendments to its regulations to permit trading in tokenized securities.
Tokenized shares represent digital versions of traditional stocks recorded on a blockchain.
If authorized, the proposal would enable the trading of tokenized shares alongside conventional ones, with settlements managed through the DTC’s forthcoming system for tokenized securities.
Nasdaq’s proposal was published in the Federal Register on Sept. 22, initiating the SEC’s 45-day review timeline, which extends until early November, or late December if prolonged.
