SEC drops investigation Into OpenSea, no action on NFTs
|The SEC ends its probe into OpenSea without legal action, rejecting NFTs as securities, marking a win for the NFT and web3 community.
The SEC has closed its investigation into OpenSea without taking any legal action or classifying NFTs as securities. This marks a major win for the NFT sector and a relief for the marketplace as it prepares to launch its token in 2025.
OpenSea’s CEO, Devin Finzer, welcomed the decision, calling it a victory for the web3 and NFT community. He criticized the SEC’s attempt to regulate NFTs under existing laws, arguing it would have slowed innovation. “Trying to classify NFTs as securities would have been a step backward. Every creator should be able to build freely without unnecessary barriers,” Finzer stated.
Last August, OpenSea received a Wells notice, warning that the SEC was considering legal action. The commission had questioned whether NFTs traded on the platform could be classified as securities. In response, OpenSea set aside $5 million to support NFT artists and developers facing similar scrutiny. However, with the case now closed, the fund will no longer be needed for legal defense.
This is the second case the SEC has dropped against crypto companies on February 21. Earlier in the day, the regulator announced plans to dismiss its lawsuit against Coinbase, with final approval pending.
These recent decisions suggest the SEC is easing its enforcement efforts on the crypto industry. However, its high-profile lawsuit against Ripple remains ongoing.
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