The U.S. Securities and Exchange Commission (SEC) has closed its investigation into the OpenSea marketplace, as announced on X by the platform’s CEO, Devin Finzer. The case was closed shortly after progress was made in the investigation against Coinbase, which may signal a new approach by the SEC toward digital assets.
How the Case Developed
In August 2024, the SEC issued a Wells Notice to OpenSea, signaling its intent to file charges for conducting unregistered securities trading. The regulator’s main concerns were that some NFTs on the platform might fall under the definition of securities.
However, after several months, the SEC unexpectedly closed the case, which may indicate a reassessment of its stance on the industry. This decision coincided with the conclusion of the investigation against Coinbase, one of the largest cryptocurrency exchanges.
Industry Reaction
OpenSea’s CEO and co-founder, Devin Finzer, hailed the regulator’s decision as a victory not only for the company but for the entire digital asset sector. He emphasized that attempting to classify NFTs as securities would have stifled industry growth and distorted the existing legal framework.
“This is a victory for everyone who builds and grows this industry. Treating NFTs as securities would have been a step backward — a misinterpretation of the law and an impediment to innovation,” Finzer wrote on social media.
Chris Akhavan, Chief Business Officer of competing NFT marketplace Magic Eden, also welcomed the news, noting that a less aggressive regulatory stance will benefit the entire sector.
“Although we are competitors, we share a belief in NFTs and their potential,” Akhavan stated.
Market Impact
The news of the investigation’s closure sparked an immediate surge in activity across the industry. According to TheTie, the number of active crypto addresses interacting with NFTs increased fivefold compared to normal levels.
Experts believe this may indicate a restoration of confidence in a market that has recently been under pressure due to regulatory uncertainty. Investors and digital content creators may now feel more secure without the fear of harsh restrictions.
The SEC’s decision to drop the charges against OpenSea could set an important precedent for the entire sector. If the regulator continues to avoid harsh measures against NFT platforms, the industry might gain greater opportunities for stable growth.
However, it remains unclear whether this signifies a complete retreat by the SEC from regulating the NFT market. New guidelines or more defined rules could emerge in the coming months.
OpenSea Regains Market Leadership
Alongside the closure of the investigation, the OpenSea marketplace has reclaimed a dominant position in the Ethereum NFT market. Over the past 30 days, the platform’s market share increased from 25,5% to 71,5%, with a significant jump during the last week—from 42,4% to 71,5%. This shift occurred amid declining volumes at competitor Blur and the launch of the SEA token.
At the same time, OpenSea was forced to modify its rewards system. The platform stopped awarding experience points (XP) for listings and trades following user complaints. The new mechanics in the updated OS2 version have raised doubts about the fairness of reward distribution and have been accused of encouraging speculation.
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