SEC Closes Investigation into OpenSea

The US Securities and Exchange Commission (SEC) has decided to end its investigation into OpenSea and has also dropped its lawsuit against Coinbase. OpenSea founder and CEO Devin Finzer announced this development on X, describing it as a “win.”

He remarked that the SEC’s initial move to classify NFTs as securities “would have been a step backward—one that misinterprets the law and hinders innovation.”

Back in August, the SEC issued OpenSea a Wells Notice, indicating that NFTs on its platform might be considered securities. A Wells Notice typically precedes the filing of a formal lawsuit. Other crypto firms like Coinbase, Uniswap Labs, Ripple, Robinhood, Consensys, and BUSD issuer Paxos have also received similar notices.

At the time, Finzer expressed shock at the SEC’s broad action against creators and artists, stating that OpenSea would “stand up and fight.”

The company committed $5 million to cover legal expenses for NFT creators and developers who might face similar notices.