The U.S. Securities and Exchange Commission (SEC) has officially ended its investigation into OpenSea, marking a major shift in regulatory approach toward the NFT and cryptocurrency industry.
OpenSea CEO Devin Finzer announced the news on social media platform X, celebrating it as a victory for creators and innovators in the NFT space. The decision comes shortly after the SEC received criticism for attempting to classify NFTs as securities.
The investigation began in August 2024 when OpenSea received a Wells notice from the SEC, warning of potential securities law violations. At that time, Finzer strongly opposed the regulatory pressure, arguing it would harm countless online artists and creative professionals who lack resources for legal defense.
The SEC's retreat from OpenSea follows its recent decision to drop a lawsuit against Coinbase, America's largest cryptocurrency exchange. These back-to-back moves suggest a possible change in the regulatory landscape for digital assets.
Industry leaders have widely welcomed the SEC's decision. Chris Akhavan, Chief Business Officer of competing marketplace Magic Eden, expressed support for OpenSea despite their market rivalry, emphasizing the broader implications for the NFT sector.
The development arrives as OpenSea prepares to launch its new project token called SEA, though the company recently paused its airdrop reward system following user criticism about wash trading concerns.
While OpenSea has confirmed the SEC's decision to Bloomberg, the regulatory body has not publicly commented on whether its five-member panel formally voted to close the investigation.
This regulatory pullback may signal a more balanced approach to overseeing digital asset businesses, potentially opening new opportunities for innovation in the NFT and cryptocurrency sectors.