The SEC has decided to close the investigation on OpenSea, marking a key moment for the NFT industry. This decision comes shortly after the breakthrough in the Coinbase case, suggesting a more flexible approach towards the crypto sector.

After Coinbase, OpenSea also exits the SEC's crosshairs: what does it mean for the future of NFTs?

The United States Securities and Exchange Commission (SEC) has closed its investigation into the NFT marketplace OpenSea, a move that could have major implications for the future of the industry.

The SEC had been probing whether OpenSea, which facilitates the buying and selling of non-fungible tokens (NFTs), should be classified as an exchange offering securities.

The company faced a Wells notice from the regulator in August 2024, indicating the SEC's intent to initiate legal action against the platform.

However, the recent closure of the case suggests a possible softening in the SEC's stance towards the NFT industry and the broader cryptocurrency market.

This development comes at a key juncture, with the SEC also set to conclude its proceedings against Coinbase, one of the leading cryptocurrency exchanges, over similar concerns.

The decision to halt these investigations could mark a shift in the regulator's strategy, indicating a more open and less confrontational approach towards the sector.

Following the news, OpenSea CEO and co-founder Devin Finzer expressed satisfaction with the conclusion of the investigation, highlighting the implications for the treatment of NFTs.

"Trying to classify NFTs as securities would have been a step backward, misinterpreting the law and slowing down innovation," Finzer said.

"We're glad the SEC ultimately recognized this and closed its investigation without pursuing any charges or penalties against OpenSea."

Chris Akhavan, chief business officer of Magic Eden, another major NFT marketplace, also welcomed the news, viewing it as a positive outcome for the broader industry.

"Even though we are competitors in the trenches, we share a deep trust in NFTs and what they will enable," Akhavan said.

"We're happy to see any positive development that advances the bull sector, and even happier when it's a recognition of the obvious: NFTs are not securities."

The announcement had an immediate impact on the markets, particularly with a surge in activity for the LOOKS token, which is native to the NFT marketplace LooksRare.

According to data from TheTie, there was a fivefold increase in active addresses on the LooksRare network immediately following the news of the closure of the SEC investigation into OpenSea.

This peak of interest could signal a renewed confidence in the NFT market, which has experienced a contraction in recent times due to regulatory uncertainties.

Investors and digital content creators may now feel more secure in continuing to develop and trade NFTs without the looming threat of restrictions and legal actions.

The SEC's decision not to pursue further action against OpenSea could have long-term implications for the entire NFT ecosystem.

If the regulatory body continues to steer clear of an aggressive approach towards NFT marketplaces, the sector could benefit from a period of greater stability and growth.

However, it remains to be seen whether the SEC will adopt a clearer and more definitive stance on the regulation of NFTs, as the closure of the OpenSea case does not necessarily resolve the issue once and for all.

New guidelines or more detailed regulations may still emerge in the coming months to provide further clarity on the matter.