SEC Scraps OpenSea Investigation, Signaling Positive Shift for NFTs

SEC Closes OpenSea Investigation, Offering Relief to NFT Market

The U.S. Securities and Exchange Commission (SEC) has dropped its investigation into OpenSea, one of the leading NFT marketplaces, CEO Devin Finzer announced on social media.

In August 2024, the SEC issued a Wells notice to OpenSea, signaling possible enforcement action over allegations that the platform was operating as an unregistered securities exchange. The case, however, has now been closed, easing regulatory pressure on the broader NFT ecosystem.

The decision comes amid reports that the SEC is preparing to vote on a potential settlement with Coinbase, which could see the regulator abandon its lawsuit against the exchange. The move is widely seen as a positive shift for the crypto industry.

“This outcome is a huge win for NFT creators and builders,” Finzer stated. “Attempting to classify NFTs as securities would have created unnecessary legal hurdles and slowed industry progress.”

Magic Eden’s Chief Business Officer, Chris Akhavan, echoed the sentiment, calling it a “positive step for the entire NFT space,” despite marketplace competition.

Following the news, LooksRare’s native token, LOOKS, experienced a surge in trading activity, with on-chain data from TheTie showing a fivefold increase in active addresses.