Regulatory Pressure Eases as SEC Closes OpenSea Investigation

SEC Ends OpenSea Probe, Providing Relief to NFT Market

The U.S. Securities and Exchange Commission (SEC) has officially ended its investigation into OpenSea, one of the largest NFT marketplaces, according to a statement from the platform’s founder and CEO, Devin Finzer.

In August 2024, OpenSea received a Wells notice from the SEC, indicating that the regulator was considering enforcement action. The SEC had alleged that OpenSea may have been operating as an unregistered securities exchange.

The decision to drop the probe aligns with broader regulatory developments, as the SEC is also set to vote on a proposed agreement to dismiss its lawsuit against Coinbase. These moves signal a more favorable regulatory stance toward the crypto and NFT industries.

“This is a major win for innovators in the space. Labeling NFTs as securities would have been a misstep—one that stifles progress and contradicts existing legal frameworks,” Finzer wrote on social media.

Chris Akhavan, Chief Business Officer of Magic Eden, an OpenSea competitor, welcomed the decision. “While we compete in the marketplace, we share a common vision for the future of NFTs. This outcome benefits the entire industry,” he stated.

Following the announcement, LooksRare’s native token (LOOKS) saw a spike in activity. Data from TheTie indicated a fivefold increase in active addresses shortly after the news broke.