SEC Clears OpenSea: NFTs Not Securities, Boosting Web3

The U.S. Securities and Exchange Commission (SEC) has concluded its investigation into OpenSea, the leading NFT marketplace, without taking any legal action. The commission announced that it would not classify NFTs as securities, marking a significant victory for the NFT and web3 community.

OpenSea's co-founder and CEO, Devin Finzer, welcomed the decision, stating that the SEC's misinterpretation of current laws regarding NFTs could have hindered progress in the sector. He emphasized the importance of creators being able to build freely without unnecessary barriers.

Last August, OpenSea received a Wells notice from the SEC, indicating that the commission planned to initiate legal action. The notice argued that some or all NFTs traded on the platform might be securities. In response, OpenSea set aside $5 million to support NFT artists and developers who could face similar actions. However, this fund will no longer be required for this purpose.

The SEC's decision comes as a major relief for OpenSea, which is preparing to launch its token in 2025. Competitors had already entered the crypto market early, and a regulatory probe could have further damaged OpenSea's prospects.

This is the second legal dismissal announced by the SEC today, February 21. Earlier in the morning, the Commission announced plans to dismiss its lawsuit against Coinbase. The crypto exchange reported that SEC staff agreed in principle to drop the case, pending the commissioners' final approval.

Overall, the SEC appears to be scaling back its crypto enforcement efforts at a rapid pace. However, its biggest legal action, the Ripple lawsuit, remains active.