The U.S. Securities and Exchange Commission (SEC) has decided to drop its investigation into OpenSea, the largest NFT marketplace, opting not to take legal action. This decision is seen as a positive sign for the NFT industry. OpenSea founder Devin Finzer celebrated the report’s conclusion, calling it a win for creators and the Web3 community.
The U.S. Securities and Exchange Commission (SEC) has decided to drop its investigation into OpenSea, the largest NFT marketplace, opting not to take legal action. This decision is seen as a positive sign for the NFT industry. OpenSea founder Devin Finzer celebrated the report’s conclusion, calling it a win for creators and the Web3 community.
The SEC’s probe into OpenSea began in August 2024 after the agency issued a Wells notice indicating its intent to take legal action. The main question was whether some non-fungible tokens (NFTs) traded on the platform should be classified as securities.
Previously, the SEC had raised concerns about whether NFTs might be considered securities under securities laws. This was part of its ongoing efforts to regulate the cryptocurrency and digital asset industries. However, after a lengthy investigation, the SEC has chosen not to pursue legal action against OpenSea.
Finzer the founder of OpenSea, announced the news to the public, confirming the investigation’s closure and sharing his satisfaction with the outcome. He described the decision as a positive step for the NFT space. He emphasized the importance of not classifying NFTs as securities, as he believes this could hinder innovation.
Back in 2024, the initial Wells notice had suggested that NFTs on the platform could be subject to securities laws. This raised alarms within the industry, and many, including Finzer, argued that such a stance could harm innovation.
The SEC’s decision to close the OpenSea investigation comes soon after a lawsuit against the cryptocurrency exchange Coinbase. In the Coinbase case, the SEC had accused the platform of acting as an unregistered securities broker, but the SEC also dropped that case.
Even though Magic Eden is a competitor in the NFT marketplace, its Chief Business Officer, Chris Akhavan, supported OpenSea’s outcome. He mentioned the industry’s shared belief in NFTs’ potential and noted that the SEC’s decision would benefit the industry and positively impact future NFT development.
