The SEC Has Closed Its Investigation Into OpenSea, Founder Devin Finzer Announces

This announcement follows the SEC's recent decision to drop its lawsuit against cryptocurrency exchange Coinbase, which had been accused of operating as an unregistered securities broker.

The U.S. Securities and Exchange Commission (SEC) has officially concluded its investigation into the non-fungible token (NFT) marketplace OpenSea, as announced by the company’s founder, Devin Finzer.

In a post on X on 21st February, Finzer characterised the SEC’s decision as a significant triumph for the NFT community. “The SEC is closing its investigation into OpenSea. This is a win for everyone who is creating and building in our space,” he stated.

This announcement follows the SEC’s recent decision to drop its lawsuit against cryptocurrency exchange Coinbase, which had been accused of operating as an unregistered securities broker. Finzer highlighted that classifying NFTs as securities could have severely impeded innovation within the digital art and collectibles sector.

The SEC's investigation into OpenSea began in August 2024, with the regulator issuing a Wells notice that alleged the platform operated as an unregistered securities marketplace. The closure of the case has been met with praise from across the crypto and NFT industries.

In a post on X, Chris Akhavan, chief business officer at competitor Magic Eden, expressed support for OpenSea, stating: “While we are competitors, we share a deep belief in NFTs and what they will enable. Happy to see such a win for the space.”

Prominent crypto commentator Beanie also welcomed the development, suggesting it might stimulate further growth in the NFT market. “OpenSea did a wonderful thing for the NFT industry by facilitating some regulatory clarity,” he stated, adding that the announcement could spur another year of growth in the NFT market.

This announcement follows OpenSea's 13th February statement regarding plans to launch a new project token, SEA, though the launch date is yet to be revealed. Despite this positive regulatory outcome, OpenSea has faced criticism over its paused airdrop reward system, with users alleging it encourages wash trading and prioritises fee collection over community support.

The NFT market ended 2024 on a high note, with annual sales exceeding $8.83 billion, reflecting a 1.1% increase from 2023's $8.7 billion, according to CryptoSlam data. Ethereum and Bitcoin led the sales, each generating $3.1 billion, followed by Solana with $1.4 billion.

However, 2024's sales figures are significantly lower than the market's peak years, which saw NFT sales of $15.7 billion in 2021 and $23.7 billion in 2022, indicating declines of 43.9% and 62.8%, respectively. Following a seven-month slump, the market began to rebound in the final quarter of 2024, with December sales reaching $877 million—the fifth-highest monthly total of the year.