The SEC has ended its investigation into OpenSea without taking legal action or labeling NFTs as securities. This is a significant victory for the NFT industry and a relief for OpenSea as it prepares to launch its token in 2025.
OpenSea’s CEO, Devin Finzer, praised the SEC’s decision. He called it a win for the web3 and NFT community. Finzer criticized the SEC’s attempt to regulate NFTs under current laws. He argued that classifying NFTs as securities would hinder innovation. He believes every creator should have the freedom to build without facing unnecessary obstacles.
Last August, OpenSea received a Wells notice from the SEC. This notice indicated that the SEC was considering legal action against the platform. The SEC questioned whether NFTs traded on OpenSea could be classified as securities. In response to this uncertainty, OpenSea set aside $5 million to help NFT artists and developers who were also under scrutiny. Now that the investigation is closed, this fund will no longer be needed for legal defense.
This marks the second case the SEC has dropped against a crypto company recently. Earlier on February 21, the SEC announced plans to dismiss its lawsuit against Coinbase, pending final approval.
