SEC Backs Down from OpenSea Probe, CEO Claims Victory
The United States Securities and Exchange Commission (SEC) has officially backed down from its probe into NFT marketplace OpenSea in a massive win for the cryptocurrency industry. The decision comes amid regulators’ more relaxed stance after years of crackdowns under the previous administration.
OpenSea CEO Claims Victory
OpenSea co-founder and CEO Devin Finzer shared the news late Friday. The news followed Coinbase’s revelation that the SEC was also dropping its case against them.
The SEC is also abandoning its investigation of [OpenSea]. This is a win for all of us building and creating in our ecosystem,” Finzer tweeted on X. “Trying to consider NFTs securities would’ve been a step backward—a misunderstanding of the law that stifles innovation. Any creator, big or small, should be able to build without unnecessary hurdles”.
In August 2023, OpenSea received a Wells notice from the SEC, threatening to charge it with unregistered securities. OpenSea vowed to fight back, and now it seems like the marketplace has prevailed.
Trump’s SEC: Strategy Shift
It’s all part of a broader trend. President Donald Trump has received millions of dollars in campaign contributions from the crypto industry heading into the 2024 elections, according to Bloomberg.
Under ex-SEC Chair Gary Gensler, there was a regulatory crackdown on big crypto players, including OpenSea, Coinbase, and Ripple. That is now shifting. Ripple’s long-running court battle with the SEC saw Judge Analisa Torres rule that XRP was not a security when sold on exchanges but that institutional sales constituted a violation of securities laws. The SEC initially demanded $2 billion in penalties but settled for $125 million.
With Trump having appointed pro-crypto SEC commissioner Paul Atkins to head the agency, the regulatory environment also appears to be heading in a more lenient, industry-friendly direction.
OpenSea’s SEA Airdrop
To add to its regulatory victory, OpenSea is celebrating by airdropping SEA tokens to the community. OpenSea Foundation announced that it would reward active, loyal users of its NFT marketplace and Seaport protocol with free tokens.
Although news of the SEA token launch is not forthcoming, OpenSea traders are holding their breath for their digital rewards. OpenSea also launched OS2, a multi-chain trading platform, to further build out its ecosystem.
