Sorare CEO calls for the involvement of industry players in NFT regulations

The regulatory framework for non-fungible tokens (NFTs) is shifting after a federal judge in Manhattan said that the NBA Top Shot NFT collection by Dapper Labs might be unregistered securities. However, the CEO of Sorare, Nicolas Julia, believes that his product should be regulated under a new category.

Sorare CEO says NFTs should be regulated

Sorare is a leading fantasy sports NFT platform. Julia believes this product should be listed under a new category outside of sports betting and daily fantasy sports regulations. He added that his company complied with regulators across Europe and the United States to create a regulatory framework appropriate for the sector.

“It’s very clear that it’s not a betting product, not a [daily fantasy sports] product. It’s a new category where you truly own your own items. There’s no notion of financial sacrifice. Hopefully, something is going to be built in the future,” Julia said.

Sorare was launched in 2018, and it claims to have over three million users globally after securing NFT partnerships with more than 300 sports organizations, such as the NLB, MLS, and NBA. The company secured a partnership deal with the English Premier League in January.

Julia noted that the company was getting support from the French government to create a new regulatory framework in the coming months, adding that he was optimistic that the US would follow in the footsteps and emerge as a global hub.

The Sorare app allows users to trade licensed digital player cards and add these players to their lineups. The players in this fantasy sports game generate rewards depending on their real-time performance of these players. The fans who win contests on Sorare can win merchandise, jerseys, VIP tickets, and match tickets.

Julian’s concerns about the regulatory framework for NFTs come after last month’s ruling by Judge Victor Marrero, who said that Dapper Labs’ use of a private blockchain for its NFTs had led to the decision of the company’s NFTs being securities.

Sorare is dominating NFT fantasy sports

In September 2021, SoftBank led a $680 million funding round for Sorare, with the company’s valuation reaching $4.3 billion. The platform has also attracted investors such as Kylian Mbappé, Lionel Messi, and Serena Williams.

Besides the English Premier League, the other European soccer leagues partnered with Sorare include Bundesliga, La Liga, Ligue 1, and Serie A. The company has its headquarters in Paris, and in early 2022, it opened its first office in the US in New York. The company has over 150 employees.

Julia noted that the company wanted to expand its presence in the US market. He noted that while the company had secured multiple partnerships in soccer, it was looking to expand in other areas in the sports industry, with its key focus being the NBA and the MLB. Nevertheless, as the regulatory framework for NFTs changes, it might affect Sorare operations and growth.