The U.S. Securities and Exchange Commission (SEC) has officially ended its investigation into OpenSea, the largest marketplace for NFTs (non-fungible tokens). Put simply, the SEC won’t take legal action against OpenSea, as it had been looking into whether NFTs (like stocks or bonds) should be considered security. That is a big win for the NFT industry as other rules could have curtailed innovation.
On February 21, 2025, OpenSea’s CEO, Devin Finzer, confirmed to have dropped the SEC’s case. This represents a new way in which the law regards NFTs in the US. This decision even benefits the entire NFT market, Magic Eden itself being a rival company agrees.
OpenSea avoids legal troubles, but the comments have not ceased among the crypto community regarding the SEC. John Deaton, a well known XRP lawyer, accused the SEC of neglecting real fraud in the crypto world as it harasses legitimate business. He was especially critical of Sam Bankman-Fried (SBF) and Do Kwon who were two of the most prolific crypto scammers of all time.
The fact that the SEC cared more about politics than investors is something Deaton claims. Moreover, he underlined that SBF poured millions of dollars into American political figures so that he had better access to regulators. At the same time, Do Kwon managed to avoid legal action for years despite his Terra project being totally fraudulent.
Recently, judges have told the SEC it acted unfairly in its enforcement, and several court losses have been made by the SEC. In the aftermath of Trump’s administration, the SEC is altering its course of action by making an intention to block fraud instead of monitoring crypto innovation.
The shift in policy could mean an end to some crypto companies’ legal battles and finally growth in the industry.
Also read: Bybit’s $1.5B Hack Exposes Crypto Exchange Risks – How to Safeguard Your Assets
