The U.S. Securities and Exchange Commission (SEC) has officially closed its investigation into the NFT marketplace OpenSea, according to Bloomberg.
Co-founder and CEO Devin Finzer confirmed this move on X on February 22, calling it a significant win for the community and the broader digital collectibles space. He emphasized that if the SEC had classified NFTs as securities, it could have stifled innovation in digital art and collectibles.
The SEC is closing its investigation into @opensea. This is a win for everyone who is creating and building in our space. 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,…
— dfinzer.eth | opensea (@dfinzer) February 21, 2025
The SEC first launched its investigation into OpenSea in August 2024, alleging that the platform operated as an unregistered securities marketplace.
With the case now closed, industry leaders have responded positively. Chris Akhavan, Chief Business Officer at Magic Eden, expressed support despite the rivalry between the two platforms, stating that while they compete in the market, they share a belief in the long-term potential of NFTs.
Coinbase CEO Brian Armstrong also welcomed the decision, calling it an amazing development and congratulating OpenSea. Notably, on February 21, Coinbase announced that the SEC had also dropped its lawsuit against the exchange.
These moves by the SEC reinforce the regulatory agency’s evolving stance toward the crypto industry. On February 19, the SEC withdrew its appeal against a court ruling that blocked a proposed regulatory change for DeFi protocols. The change would have required crypto liquidity providers and automated market makers with over $50 million in assets to register as dealers and comply with KYC and AML rules.
Meanwhile, the SEC’s decision comes shortly after OpenSea’s February 13 announcement about its upcoming project token, SEA. However, details about the launch date remain undisclosed.
At the same time, OpenSea has faced backlash over its new airdrop reward system. The beta launch of OpenSea’s upgraded marketplace, OS2, introduced an XP system that determines user eligibility for the SEA token airdrop. However, the program drew criticism for allegedly encouraging wash trading, neglecting creators, and favoring users who increased platform fees.
Following community criticism, the company temporarily suspended XP rewards for listing and bidding activities. Finzer stated that OpenSea will shift its focus to XP shipments, a feature introduced on February 14.
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