Overview

The U.S. Securities and Exchange Commission (SEC) has decided to close its investigation into OpenSea, according to the marketplace’s founder and CEO, Devin Finzer, who announced this news on social media.

Key Points

• The closure of the investigation is viewed as a positive development for the cryptocurrency and NFT sectors, coming just after the SEC indicated it would conclude its lawsuit against Coinbase.
• In August 2024, the SEC issued a Wells notice to OpenSea, suggesting potential enforcement actions may have been pursued against the platform. They had claimed the marketplace might be operating as an unregistered securities establishment.
• Reacting to the announcement, Finzer emphasized, “This is a win for everyone who is creating and building in our space. Trying to classify NFTs as securities would have been a step backward—one that misinterprets the law and slows innovation.”
• Chris Akhavan, from Magic Eden, noted the decision was a victory for the broader cryptocurrency domain, stating he believes in NFTs and their potential.

The news has led to a surge in activity for the native token of NFT marketplace LooksRare, with significant increases in active usage reported following the SEC’s announcement.