SEC Drops OpenSea Investigation, Marking a Win for the NFT Market
The U.S. Securities and Exchange Commission (SEC) has officially closed its investigation into OpenSea, one of the largest NFT marketplaces, according to its founder and CEO, Devin Finzer.
The SEC had issued a Wells notice against OpenSea in August 2024, signaling its intent to pursue an enforcement action. The regulator alleged that OpenSea may have been operating as an unregistered securities exchange.
The decision to drop the probe comes at a time when the SEC is preparing to vote on a proposed settlement with Coinbase, which could see the regulator abandon its lawsuit against the crypto exchange. The move is seen as a positive development for the broader crypto and NFT industries.
“This is a win for everyone creating and building in the space. Trying to classify NFTs as securities would have been a step backward—one that misinterprets the law and hinders innovation,” Finzer posted on social media.
Chris Akhavan, Chief Business Officer of Magic Eden, a rival NFT marketplace, echoed similar sentiments. “While we are competitors in the trenches, we share a deep belief in NFTs and what they will enable,” he said, describing the SEC’s decision as a broader victory for the industry.
The news triggered a surge in activity for the native token of the NFT marketplace LooksRare. According to data from TheTie, the token (LOOKS) saw a fivefold increase in active addresses shortly after the announcement.
