NFTs Aren’t Securities? SEC Withdraws in the OpenSea Case

Devin Finzer, the founder and CEO of the platform, contended that the initial effort to define NFTs as securities was a misguided policy, intended to distort regulatory frameworks and impede the growth of the industry. It is noteworthy that in August 2024, the SEC issued a Wells notice to OpenSea, initiating an investigation into potential trading of unregistered securities.

This is a win for everyone who is creating and building in our space. Every creator, big or small, should be able to build freely without unnecessary barriers,

 Finzer remarked.

Following the decision to drop legal action against Coinbase—accused of unlawful brokerage activities—the Commission promptly closed the case. This move has been met with enthusiastic approval from the crypto community, with many, including direct competitors, congratulating OpenSea. They argue that reducing SEC pressure might well pave the way for a revitalized crypto market and the emergence of innovative NFT collections.

In tandem with this regulatory shift, OpenSea has reestablished its market dominance; its share of trading volume has increased several-fold over the past four weeks. Observers link this growth to the recent announcement of the SEA token and the promise of an impending airdrop, with users actively working to meet the criteria for future rewards.