The United States Securities and Exchange Commission (SEC) has concluded its probe into non-fungible token (NFT) marketplace OpenSea

The industry has reacted positively to the SEC closing its investigation into OpenSea, which began in August 2024 when the regulator issued a Wells notice

The United States Securities and Exchange Commission (SEC) has concluded its probe into non-fungible token (NFT) marketplace OpenSea, according to its founder.

“The SEC is closing its investigation into OpenSea. This is a win for everyone who is creating and building in our space,” OpenSea founder Devin Finzer said in a Feb. 21 X post.

The development comes just hours after the SEC agreed to drop its lawsuit against crypto exchange Coinbase, which accused the company of operating as an unregistered securities broker.

Finzer went on to highlight that labeling NFTs as securities would have dealt a blow to the industry and stifled innovation.

The broader industry has reacted positively to the SEC dropping its investigation into OpenSea, which began in August 2024 when the regulator issued a Wells notice alleging the NFT exchange had operated as a marketplace for unregistered securities.

NFT marketplace Magic Eden's chief business officer, Chris Akhavan, said that while Magic Eden competes with OpenSea, he views it as a win for the entire industry.

“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,” Akhavan said in a Feb.21 X post.

Pseudonymous crypto commentator Beanie told their 223,800 X followers that the development could be “a real catalyst for the next NFT bull market.”

“OpenSea did a wonderful thing for the NFT industry by facilitating some regulatory clarity. I’m sure it has come at great cost as well. So we should all be thankful for that,” Beanie said in a Feb. 21 X post.

Just days earlier, on Feb. 13, the OpenSea Foundation said it was preparing to launch a project token, SEA. The foundation did not specify the timing of the token launch but said SEA would be available to users in countries including the US.

Meanwhile, OpenSea recently faced criticism from users over its new airdrop reward system, which it later paused. Some users claimed it didn’t support builders, promoted wash trading, and was mainly focused on collecting fees.