SEC Closes Investigation into OpenSea
The U.S. Securities and Exchange Commission (SEC) has officially concluded its investigation into OpenSea, a leading non-fungible token (NFT) marketplace. This announcement was made by the platform’s founder and CEO, Devin Finzer, via his social media channels. The SEC previously issued a Wells notice to OpenSea in August 2024, signaling its intention to pursue enforcement actions against the platform. The notice raised concerns that OpenSea might have been operating as an unregistered securities marketplace, a serious allegation that could have significant implications for the NFT sector.
This development coincides with the SEC’s impending vote on a negotiated settlement with Coinbase, which aims to dismiss its lawsuit against the exchange. This move is viewed as a positive outcome for the broader cryptocurrency industry, as well as for NFT creators. Finzer expressed his relief and optimism, stating, “This is a win for everyone who is creating and building in our space. Attempting to classify NFTs as securities would have represented a major setback—one that misinterprets the law and hinders innovation.”
In response to Finzer’s announcement, Chris Akhavan, the chief business officer of rival NFT marketplace Magic Eden, highlighted the significance of this decision for the entire cryptocurrency ecosystem. He remarked, “While we are competitors in the trenches, we share a deep belief in NFTs and the transformative potential they hold.”
Following the news, there was a noticeable increase in activity for the native token of the NFT marketplace LooksRare. The token, known as LOOKS, experienced a remarkable surge in active addresses shortly after the announcement, reflecting an approximately fivefold increase compared to typical figures, as reported by data analytics firm TheTie. This uptick underscores the positive sentiment within the NFT and cryptocurrency markets following the SEC’s decision.
