The U.S. Securities and Exchange Commission has closed its investigation into OpenSea, a major non-fungible token marketplace, in a move that is being seen as positive for the cryptocurrency industry and NFT creators.
SEC Drops OpenSea Investigation Easing Pressure on NFT Market
The U.S. Securities and Exchange Commission (SEC) has closed its investigation into major non-fungible token marketplace OpenSea. The decision is seen as positive for the cryptocurrency industry and NFT creators.
OpenSea is a popular online marketplace for buying, selling, and trading non-fungible tokens (NFTs).
Founded in 2017, the platform allows artists, creators, and collectors to mint, buy, and sell unique digital assets.
With over 1 million active users, OpenSea has become one of the leading NFT marketplaces, offering a wide range of digital collectibles, from art and music to virtual real estate and gaming items.
OpenSea's user-friendly interface and robust features make it an ideal platform for both beginners and experienced collectors.
SEC Ends Enforcement Action Against OpenSea
Coinbase is a US-based cryptocurrency exchange and wallet platform founded in 2012.
It allows users to buy, sell, and store digital currencies such as Bitcoin, Ethereum, and Litecoin.
Coinbase is known for its user-friendly interface and high-security standards, making it one of the most popular cryptocurrency exchanges globally.
As of 2022, Coinbase has over 100 million registered users and supports over 100 different payment methods.
The regulator issued a Wells notice against OpenSea in August 2024, indicating it was planning on pursuing an enforcement action against it. The SEC alleged the platform may have been operating as an unregistered securities marketplace. However, the regulator has now decided to drop its investigation.
Impact of the Decision
This move comes shortly after the SEC moved to end its lawsuit against Coinbase. OpenSea‘s founder and CEO Devin Finzer described the decision as a ‘win for everyone who is creating and building in our space.‘ He emphasized that classifying NFTs as securities would have been a step backward, misinterpreting the law and slowing innovation.
Devin Finzer is a serial entrepreneur and co-founder of OpenSea, one of the largest online marketplaces for non-fungible tokens (NFTs).
Finzer has a background in computer science and previously worked at various tech companies.
He co-founded OpenSea in 2017 with Alex Atallah to provide a platform for buying, selling, and trading digital assets.
Under Finzer's leadership, OpenSea has experienced significant growth and has become a leading player in the NFT market.
Industry Reaction
Chris Akhavan, chief business officer of NFT marketplace Magic Eden, reacted to Finzer’s post by stating it was a ‘victory for the wider cryptocurrency space.‘ He highlighted the shared belief in NFTs and their potential to drive innovation.
Market Response
The announcement led to an uptick in activity for the native token of NFT marketplace LooksRare. The token, LOOKS, saw a surge in active addresses shortly after the announcement, representing an ‘approximately fivefold increase compared to the usual figures,’ according to data from TheTie.
