According to co-founder and CEO Devin Finzer, the U.S. Securities and Exchange Commission (SEC) has decided to close the OpenSea lawsuit.
OpenSea had been under SEC scrutiny since August 2024, when the agency issued a Wells notice, a formal warning that legal action might be pursued. The regulator alleged that OpenSea had functioned as a marketplace for unregistered securities by facilitating NFT sales. However, the SEC has now opted against enforcement action, a move widely welcomed by the NFT and crypto communities.
Finzer argued that classifying NFTs as securities would have negatively impacted the industry by restricting innovation. His stance was echoed by industry figures, including Chris Akhavan, Chief Business Officer of Magic Eden, a competing NFT marketplace, who called the decision a victory for the sector.
The closure of the OpenSea lawsuit comes at a pivotal moment for the platform. Just days earlier, the OpenSea Foundation announced plans to launch a new project token, SEA. While details remain limited, the token is expected to be available in multiple countries, including the United States.
However, OpenSea has also faced recent criticism over its airdrop reward system, which some users claimed encouraged wash trading and failed to adequately support NFT creators. In response, the company has temporarily paused the program.
The announcement came late Friday, coinciding with news that the SEC intends to drop its case against cryptocurrency exchange Coinbase.