The U.S. Securities and Exchange Commission (SEC) has officially closed its investigation into OpenSea, the leading NFT marketplace, marking a major milestone for the digital asset industry. OpenSea founder Devin Finzer described it as a major victory for the NFT community, affirming that innovation in the space should not be hindered by unclear regulatory hurdles.
SEC Backs Off Investigation into OpenSea
Finzer announced on social media platform X on February 21 that the SEC has officially closed its investigation into whether OpenSea is an unregistered securities marketplace. The investigation began in August 2024, when the SEC issued a Wells notice, signaling the possibility of legal action against the NFT platform.
“A huge win for everyone who is creating and building in the NFT space,” Finzer said.
The news was met with strong reactions from the crypto community. Chris Akhavan, chief business officer of Magic Eden, a competing NFT platform, also expressed support despite the two companies being rivals. Meanwhile, prominent commentator Beanie suggested that the SEC’s decision could help create a new wave in the NFT market.
The SEC’s closure of its OpenSea investigation comes shortly after the agency withdrew its case against Coinbase, a cryptocurrency exchange accused of operating as an unregistered securities brokerage.
NFT Market Rebounds With Sales of Nearly $9 Billion
Aside from the good news from the SEC, the NFT market also showed signs of a strong recovery in 2024. NFT sales reached $8.83 billion for the year, up slightly by 1.1% from 2023, according to data from CryptoSlam.
Ethereum and Bitcoin led the market, each blockchain recording sales of $3.1 billion, while Solana reached $1.4 billion. In terms of all-time sales, Ethereum still holds the dominant position with $44.9 billion, followed by Solana ($6.1 billion) and Bitcoin ($4.9 billion).
Despite some recovery, sales in 2024 are still significantly lower than at their peak. In 2021, the NFT market recorded $15.7 billion in sales, and in 2022, it peaked at $23.7 billion. Compared to these milestones, 2024 sales are down 43.9% and 62.8%, respectively.
Signs of a market revival come after seven consecutive months of decline. October sales rose 18% to $353 million, followed by a six-month high of $562 million in November. December saw sales of $877 million, the fifth-highest of the year.
Is OpenSea Preparing for a New Phase?
Despite the positive news from the SEC, OpenSea still faces new challenges. The company was recently criticized for its suspended reward airdrop system, which many users said encouraged money laundering and focused on collecting fees instead of supporting the community.
Additionally, OpenSea is planning to launch a new project token called SEA, but details have not been released. This could be a move to strengthen the platform’s position in the context of the NFT market gradually recovering.
Conclusion
The SEC’s conclusion of the OpenSea investigation is a positive signal for the NFT market and helps to strengthen confidence in innovation in this field. Despite the challenges in sales and regulation, the NFT industry is still on the road to recovery with many new prospects. With the market constantly changing, the developments of OpenSea and other NFT platforms will continue to attract attention in the coming time.
