SEC to Dismiss its Investigation into NFT Marketplace OpenSea: Here is What Happened

• The SEC has closed its investigation into OpenSea, deciding not to pursue charges over NFTs as securities.
• OpenSea CEO Devin Finzer called it a win for Web3, arguing that regulating NFTs as securities would stifle innovation.
• The SEC is also dropping its lawsuit against Coinbase, signaling a potential shift in crypto regulation.

The U.S. Securities and Exchange Commission (SEC) has officially ended its investigation into OpenSea, deciding not to pursue enforcement action over claims that NFTs are securities.

This marks a major win for both OpenSea and the broader Web3 community, which has long argued that NFTs don’t fit traditional securities laws.

SEC Walks Away—What Changed?

According to a Friday report from Bloomberg, OpenSea received word that the investigation was closed, and no charges would be filed.

• CEO Devin Finzer called it a victory, saying the SEC’s original stance would have “slowed innovation.”
• The SEC had sent OpenSea a Wells notice in August, signaling it was considering legal action.
• The agency initially claimed some NFTs could be securities, aligning with its broader crypto crackdown.

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The NFT Market Just Dodged a Bullet

For months, OpenSea braced for legal trouble, even setting aside $5 million for legal defense, expecting lawsuits targeting NFT artists and developers.

Finzer took to X (formerly Twitter) to celebrate:

“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.”

The SEC’s decision comes at a turning point—regulatory attitudes toward crypto are shifting under the new administration.

SEC Also Dropping Lawsuit Against Coinbase

In another massive legal shift, the SEC is reportedly dismissing its lawsuit against Coinbase.

• Coinbase announced earlier today that SEC staff had agreed to drop the case, pending final approval.
• The lawsuit dismissal will be “with prejudice”, meaning the SEC can’t refile similar charges later.
• This could set a major precedent for other crypto-related cases still in progress.

With the SEC stepping back from major enforcement battles, could this signal a friendlier regulatory environment for crypto? For now, NFT creators and crypto exchanges are breathing a little easier.