SEC Ends OpenSea Probe, Marking a Win for NFT Industry
The U.S. Securities and Exchange Commission (SEC) has officially ended its investigation into OpenSea, one of the world’s largest NFT marketplaces, CEO Devin Finzer confirmed on social media.
The SEC had issued a Wells notice to OpenSea in August 2024, signaling a potential enforcement action over allegations that the platform was operating as an unregistered securities exchange. However, the regulator has now dropped the case, providing relief to the NFT sector.
The decision follows reports that the SEC is preparing to vote on a settlement with Coinbase, potentially dismissing its lawsuit against the exchange. Industry experts see this as a broader shift in regulatory stance, easing pressure on crypto-related platforms.
“This is a victory for innovation,” Finzer stated. “Labeling NFTs as securities would have set the industry back and created unnecessary legal uncertainty.”
Chris Akhavan, Chief Business Officer at NFT marketplace Magic Eden, welcomed the news. “Regardless of competition, we all want to see NFTs thrive. Today’s decision is a step in the right direction,” he posted.
In response to the announcement, LooksRare’s native token, LOOKS, saw a surge in trading activity, with active wallet addresses spiking nearly fivefold, according to blockchain analytics firm TheTie.
