US SEC Drops Investigation Into NFT Platform OpenSea

The US Securities and Exchange Commission (SEC) has ended its probe into the leading NFT platform, OpenSea, in a significant win for the sector. OpenSea Co-founder and CEO Devin Finzer tweeted the new development on February 21. He noted that the regulator has immediately dropped its investigation into the non-fungible token (NFT) marketplace. https://twitter.com/dfinzer/status/1893086281300582772 Finzer tagged the development as a “win for everyone” building in the crypto space. According to him, classifying NFTs as a security is a step in the wrong direction for technological innovation in the United States. US SEC Drops Probe The case dates back to August 2024, when OpenSea received a Wells Notice from the securities regulatory watchdog. The Gary Gensler-led SEC notified the marketplace of an investigation into a possible offering of unregistered securities to US investors. The classification of NFTs as securities surprised the crypto community and the US Congress. Gensler came under intense bipartisan scrutiny for his regulatory overreach, with Democratic Representative Ritchie Torres questioning the regulator’s classification of non-fungible tokens as securities. Meanwhile, the new US SEC administration has displayed a contrasting disposition toward NFT classification , dropping the investigation as a result of this. The OpenSea founder noted that creators can now build freely without fear of regulatory impediments. Notably, this came hours after the US SEC dismissed its case against Coinbase. The exchange announced the development, sparking a rally in the crypto market before Bybit’s $1.46 billion hack contributed to a steep correction. Crypto Market Reacts The OpenSea situation drew reactions from the crypto community, including its strong rival, Magic Eden. Chris Akhavan, the chief business officer at Magic Eden, stated that the development was a win for the space. While acknowledging its competition with OpenSea, he suggested the SEC attack was against the entire NFT sector and their deep belief in the art. Hence, a win for OpenSea is a win for all creators and artists. Market commentator Beanie stated that the OpenSea win has paved the way for regulatory clarity in the NFT market. He also suggested that this development could catalyze the sector's next bull run. Meanwhile, the SEC’s dismissal adds to the recent bullish momentum around OpenSea. The marketplace reclaimed over 71% of the NFT market’s shares following the buzz around the announcement that it would launch a native token, SEA.