SEC Ends Investigation Into OpenSea, A Relief for NFTs

• The SEC has ended its investigation into OpenSea, signaling potential regulatory shifts in the NFT space.
• OpenSea has reclaimed dominance in the Ethereum NFT market, regaining 71.5% market share in just four weeks.

The skies are starting to clear for OpenSea and the NFT industry as a whole. The U.S. Securities and Exchange Commission (SEC) has at last ended its probe on the biggest NFT platform following months of uncertainty. OpenSea CEO Devin Finzer called the move a win for creators and innovators in the NFT space.

Still, behind the encouraging headlines, a great question remains: Does this imply the SEC is beginning to change its posture toward digital assets?

The SEC is closing its investigation into @opensea. 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—one that misinterprets the law and slows innovation.

Every creator, big or small,…

— dfinzer.eth | opensea (@dfinzer) February 21, 2025

SEC’s Decision: A New Era for NFTs or Just a Pause?

The argument of whether or not these digital assets qualify as securities has been raging ever since the NFT explosion. Should the SEC classify NFTs as securities, the effects might be significant: tougher control would be enforced and business innovation would be constrained. One of the major players, OpenSea, most obviously does not want this situation to arise.

For industry players, the SEC’s decision to end the probe looks to be a positive development. Finzer further claimed that labeling NFTs as securities would be a step backwards meant to merely stifle creativity. This is not without logic. Should overregulation be enforced, artists could consider twice before creating and the NFT market might lose attraction.

OpenSea’s Comeback: Regaining Market Dominance

On the other hand, CNF previously reported that OpenSea managed to reclaim 71.5% of the Ethereum NFT market share in just four weeks. This is an impressive comeback after facing stiff competition from other marketplaces.

More remarkably, OpenSea’s daily trade volume has jumped dramatically. Originally averaging $3.47 million, the amount has since increased to $17.4 million following the revelation of the SEA token launch plan.

Not only has the trading volume increased, the number of daily transactions has also skyrocketed from 6,101 to 14,700 transactions. These numbers reflect that trust in OpenSea is growing again, especially after the SEC investigation was officially closed.

SEC Drops Cases Against OpenSea & Coinbase

The SEC’s decision to abandon looking at OpenSea comes at a fascinating junctur. That same day the SEC decided to dismiss its action against Coinbase. This has given people conjecture that authorities are beginning to address the crypto and digital asset sector in a more open approach.

Although the policy shift is not officially worded, this move at least gives some hope that the SEC would not unilaterally stifle digital innovation. Naturally, though, this does not mean OpenSea and other platforms may run free from future regulations.

OpenSea now has a great chance to establish its position in the NFT sector as the SEC inquiry is ended and its market share is under control. Additionally likely to increase platform activity is the scheduled release of the SEA token.