SEC Drops Investigation Into OpenSea, No Action on NFTs

The SEC has officially closed its investigation into OpenSea, deciding not to pursue legal action or classify NFTs as securities.

This decision brings relief to the NFT marketplace, marking the second case the regulator has dropped against a crypto platform on the same day.

OpenSea’s CEO, Devin Finzer, hailed the outcome as a victory for the NFT and Web3 industry, arguing that mislabeling NFTs as securities would have stifled innovation. He emphasized that creators should be free to build without unnecessary regulatory hurdles.

The probe initially gained traction after OpenSea received a Wells notice last August, signaling potential enforcement action. In anticipation, the platform allocated $5 million to support NFT artists and developers facing similar scrutiny. With the case now closed, those funds will no longer be needed for legal defense.

This development comes at a crucial time for OpenSea, which is preparing to launch its token in 2025. A prolonged regulatory battle could have placed it at a disadvantage against competitors that have already integrated more deeply into the crypto economy.

Earlier that same day, the SEC also announced plans to drop its lawsuit against Coinbase, suggesting a broader pullback from aggressive enforcement in the crypto space. However, major legal battles, including the ongoing case against Ripple, remain unresolved.