OpenSea Founder Celebrates SEC Victory as the Regulator Closes Its Investigation into the NFT Marketplace

The probe, which began in August 2024, centered around allegations that OpenSea had facilitated the sale of unregistered securities.

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

This development marks a significant milestone for OpenSea as it navigates the evolving regulatory landscape surrounding digital assets and NFTs.

OpenSea founder celebrates its victory

Taking to Twitter, OpenSea founder Devin Finzer announced the SEC’s decision, highlighting its importance for the NFT industry.

“The SEC is closing its investigation into OpenSea. This is a win for everyone who is creating and building in our space,” Finzer wrote.

“Trying to classify NFTs as securities would have been a step backward—one that misinterprets the law and slows innovation. Every creator, big or small, should be able to build freely without unnecessary barriers.”

As previously reported by Finzer had warned that labeling NFTs as securities could stifle innovation and hinder growth within the industry.

However, the political landscape shifted when Donald Trump secured a second presidential term, with his administration taking a more crypto-friendly stance.

Under the current SEC leadership, the investigation into OpenSea was closed—a move welcomed by industry leaders.

OpenSea’s competitors, too, celebrate this victory

Magic Eden’s chief business officer, Chris Akhavan, acknowledged that while his platform competes with OpenSea, the SEC’s decision marks a victory for the entire NFT industry.

“We believe that regulatory clarity benefits all players in the space, fostering innovation and growth across the ecosystem,” Akhavan added.

“While we are competitors in the trenches, we share a deep belief in NFTs and what they will enable. Happy to see such a win for the space.”

SEC ends investigation with Coinbase

Interestingly, the SEC’s decision to conclude its investigation into OpenSea came just hours after it agreed to dismiss its lawsuit against crypto exchange Coinbase.

The lawsuit alleged that Coinbase is operating as an unregistered securities broker, a claim that the exchange has vehemently contested.

After the news came in, Coinbase CEO Brian Armstrong expressed optimism, predicting that the Commission would officially approve the dismissal by next week.

“Once approved by the Commission (which we’re told to expect next week), this would be a full dismissal, with $0 in fines paid and zero changes to our business,” Armstrong stated.

“Together, we showed the SEC that crypto is too important to shoehorn into outdated securities law.”

These developments suggest a more favorable regulatory environment for the crypto industry under the current SEC leadership.