SEC Wraps Up Inquiry into NFT Platform OpenSea, According to Founder

The U.S. Securities and Exchange Commission (SEC) has officially concluded its inquiry into the non-fungible token (NFT) marketplace OpenSea, according to the company’s founder, Devin Finzer.

In a post on X on February 21, Finzer characterized the decision as a significant triumph for the NFT community.

“The SEC is terminating its investigation into OpenSea. This is a victory for everyone who is creating and building in our sector,” Finzer stated.

SEC Withdraws Lawsuit Against Coinbase

This announcement followed closely after the SEC dismissed its lawsuit against cryptocurrency exchange Coinbase, which had been accused of operating as an unregistered securities dealer.

Finzer highlighted that labeling NFTs as securities could have greatly stifled innovation within the digital art and collectibles sector.

The SEC’s investigation into OpenSea commenced in August 2024 when the regulator issued a Wells notice, alleging that the platform operated as an unregistered securities marketplace.

The decision to close the case has received broad support across the crypto and NFT sectors.

Chris Akhavan, chief business officer at competing NFT marketplace Magic Eden, expressed solidarity despite the companies being competitors.

“While we’re rivals in the trenches, we share a profound belief in NFTs and their potential. Happy to witness such a win for the sector,” Akhavan posted on X.

Excellent news and a clear victory for those who are creating and building @opensea. The previous SEC conducted a sweeping and legally flawed investigation + regulatory by enforcement approach, which had been direct attacks against creators, artists, and U.S. innovation. Appreciate OpenSea for… https://t.co/Fk1wlluW0C

— Ji Kim (@_jikim) February 22, 2025

Notable crypto commentator Beanie also welcomed the news, indicating it could spark a new wave in the NFT market.

“OpenSea did a remarkable thing for the NFT industry by providing some regulatory clarity. I’m sure it has come at a significant cost as well. So we should all be grateful for that,” Beanie told his 223,800 followers.

This announcement follows OpenSea’s statement on February 13 regarding its plans to introduce a new project token, SEA, although specifics about the launch date remain undisclosed.

Despite this favorable regulatory outcome, OpenSea has recently faced criticism regarding its paused airdrop reward system, with users accusing it of promoting wash trading and prioritizing fee collection over community support.

NFT Market Recovers in 2024 with $8.83B in Sales

The NFT market concluded 2024 on a positive note, with annual sales exceeding $8.83 billion, reflecting a 1.1% increase from 2023’s $8.7 billion, according to CryptoSlam data.

Ethereum and Bitcoin led the market, each generating $3.1 billion in sales, followed by Solana with $1.4 billion.

In total NFT sales, Ethereum remains dominant with $44.9 billion in all-time sales, followed by Solana at $6.1 billion and Bitcoin at $4.9 billion.

Despite the slight recovery, 2024’s sales volumes were significantly lower than the market’s peak years.

NFT sales reached $15.7 billion in 2021 and surged to $23.7 billion in 2022, making 2024’s total a 43.9% and 62.8% decline from those peak periods.

The market’s resurgence began after a seven-month downturn, with sales hitting their lowest point since 2021 in September.

However, a rebound occurred in the final quarter. October sales increased by 18% to $353 million, followed by a six-month high of $562 million in November.

December wrapped up the year strongly, achieving $877 million in sales—the fifth-highest monthly total of 2024.

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