tl;dr
The U.S. Securities and Exchange Commission (SEC) has ended its investigation into the NFT marketplace OpenSea, signaling the conclusion of the federal government's scrutiny of crypto. OpenSea CEO Devin Finzer announced the closure of the SEC probe on social media, emphasizing the importance of allo...
The U.S. Securities and Exchange Commission (SEC) has ended its investigation into the NFT marketplace OpenSea, signaling the conclusion of the federal government's scrutiny of crypto. OpenSea CEO Devin Finzer announced the closure of the SEC probe on social media, emphasizing the importance of allowing creators to innovate without unnecessary barriers. This decision follows OpenSea receiving a Wells notice from the SEC last year, which was not an indication of wrongdoing. The SEC's withdrawal from OpenSea comes after it also dropped a lawsuit against Coinbase, the largest crypto exchange in the U.S., which Coinbase's CEO described as a "major win for the rule of law."
According to a post from OpenSea CEO Devin Finzer on the social media platform X, the SEC is ending its investigation into the company. “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, should be able to build freely without unnecessary barriers.” Last year, Finzer announced that OpenSea had received a Wells notice from the SEC warning them of possible securities law violations. A Wells notice is a warning issued by the SEC that it’s planning to pursue legal action against a company and is not an indication of wrongdoing. At the time, Finzer said, “This is a move into uncharted territory. By targeting NFTs, the SEC would stifle innovation on an even broader scale: hundreds of thousands of online artists and creatives are at risk, and many do not have the resources to defend themselves.” Finzer also offered to put up $5 million for other NFT artists or startups that were facing legal persecution from regulators.
Last week, the SEC also dropped its lawsuit against Coinbase, the biggest crypto exchange in the US. Coinbase CEO Brian Armstrong described the regulator’s surrender as a “major win for the rule of law”.