The United States Securities and Exchange Commission (SEC) has officially closed its investigation into OpenSea, the leading non-fungible token (NFT) marketplace. OpenSea’s founder and CEO, Devin Finzer, shared the news on Feb. 21, calling it "a win for everyone who is creating and building in our space."
The SEC is closing its investigation into @opensea. This is a win for everyone who is creating and building in our space. Trying to classify NFTs as securities would have been a step backward—one that misinterprets the law and slows innovation.
— dfinzer.eth | opensea (@dfinzer) February 21, 2025
Every creator, big or small,…
The SEC’s probe into OpenSea began in August 2024 when the regulator issued a Wells notice, signaling potential enforcement action. The commission alleged that OpenSea may have been operating as an unregistered securities marketplace by facilitating the trading of NFTs. However, after months of uncertainty, the regulator has opted to close the investigation without pursuing further action.
This decision follows closely on the heels of the SEC dropping its lawsuit against Coinbase, which had been accused of operating as an unregistered securities broker. The regulatory shift has been seen as a positive signal for the broader crypto and NFT industries.
The SEC is taking a hands-off approach, and I think everyone notices it.
— Lumus 👽 (@Mr_Lumus) February 25, 2025
The SEC is closing and canceling many cases related to crypto projects, including Robinhood Crypto, Coinbase, and OpenSea. https://t.co/VQsPAbMgkW
A Step Forward for NFTs
The closure of the SEC’s investigation has sparked optimism across the NFT and Web3 space. Magic Eden’s Chief Business Officer, Chris Akhavan, acknowledged the competitive nature of the industry but emphasized the broader significance of this decision. “While we are competitors in the trenches, we share a deep belief in NFTs and what they will enable. Happy to see such a win for the space,” Akhavan said.
Amazing news and a clear win for those who are creating and building @opensea. The previous SEC underwent a sweeping and legally flawed investigation + reg by enforcement approach, which were direct attacks against creators, artists, and U.S. innovation. Appreciate OpenSea for… https://t.co/Fk1wlluW0C
— Ji Kim (@_jikim) February 22, 2025
Following the announcement, NFT-related tokens experienced increased activity. The native token of the LooksRare marketplace, LOOKS, saw a surge in active addresses, reportedly increasing fivefold compared to usual figures. This suggests renewed investor confidence in NFT platforms after a period of regulatory uncertainty.
However, OpenSea has not been without challenges. The platform recently faced criticism over its new airdrop reward system, leading to a pause in its rollout. Some users claimed that the system prioritized wash trading and fee collection over genuine community incentives.
Just days before the SEC’s announcement, the OpenSea Foundation revealed plans to launch a new project token, SEA. While details about the token remain scarce, it is expected to be available to users in multiple countries, including the United States.
HODL Team
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