SEC Drops Investigation into NFT Marketplace OpenSea

YEREVAN (CoinChapter.com) — The U.S. Securities and Exchange Commission (SEC) has ended its investigation into the NFT marketplace OpenSea. OpenSea founder Devin Finzer confirmed the news on Feb. 21. The SEC investigation focused on whether OpenSea allowed trading of unregistered securities.

In his statement, Finzer wrote:

“The SEC is closing its investigation into OpenSea. This is a win for everyone who is creating and building in our space.”

The SEC investigation had been ongoing since August 2024 when the regulator issued a Wells notice to OpenSea. The notice alleged that OpenSea was operating as a platform for unregistered securities.

This decision came just hours after the SEC dropped its lawsuit against crypto exchange Coinbase. In that case, Coinbase faced accusations of operating as an unregistered securities broker. Both cases ended on the same day.

NFT Industry Responds to SEC Investigation Ending

The decision to close the SEC investigation was well received in the NFT industry. Chris Akhavan, chief business officer of the competing NFT marketplace Magic Eden, commented positively. On Feb. 21, he stated:

“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.”

Another industry figure, Beanie, a crypto commentator with 223,800 followers, also reacted. Beanie stated on Feb. 21:

“OpenSea did a wonderful thing for the NFT industry by facilitating some regulatory clarity. I’m sure it has come at great cost as well. So we should all be thankful for that.”

OpenSea Plans SEA Token Launch

The news of the SEC investigation closing followed another announcement from OpenSea. On Feb. 13, the OpenSea Foundation shared plans to launch its own token called SEA token. The foundation did not mention a specific launch date. However, it confirmed that the SEA token will be available to users in several countries, including the United States.

The SEA token news arrived during a challenging time for OpenSea. Recently, the NFT marketplace faced criticism from its users. This criticism focused on a new airdrop reward system, which OpenSea later paused. Users claimed the system promoted wash trading and did not fairly support creators.

SEC Decision Brings Relief to NFT Marketplace

The closure of the SEC investigation provides relief to OpenSea and the broader NFT industry. Previously, Finzer expressed concerns that labeling NFTs as securities could harm the NFT industry. He stated that it could negatively impact new projects.

With the SEC investigation over, many in the NFT industry see a clearer path forward. It also reduces uncertainty for creators, investors, and other NFT marketplace operators.

The SEC has not made any further public comments on the decision. However, the ending of the investigation is viewed as important for the future legal treatment of NFTs. The NFT industry expects this outcome will affect future regulatory actions involving digital assets.

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