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Ruholamin Haqshanas
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Ruholamin Haqshanas
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The U.S. Securities and Exchange Commission (SEC) has officially ended its investigation into non-fungible token (NFT) marketplace OpenSea, according to the company’s founder, Devin Finzer.
In a post on X on February 21, Finzer described the decision as a significant victory for the NFT community.
“The SEC is closing its investigation into OpenSea. This is a win for everyone who is creating and building in our space,” Finzer stated.
SEC Drops Lawsuit Against Coinbase
The announcement came shortly after the SEC dropped its lawsuit against crypto exchange Coinbase, which had been accused of operating as an unregistered securities broker.
Finzer emphasized that classifying NFTs as securities could have severely hindered innovation within the digital art and collectibles space.
The SEC’s investigation into OpenSea began in August 2024 when the regulator issued a Wells notice, alleging the platform functioned as an unregistered securities marketplace.
The decision to close the case has been met with widespread support across the crypto and NFT industries.
Chris Akhavan, chief business officer at rival NFT marketplace Magic Eden, expressed solidarity despite the companies being competitors.
“While we are competitors in the trenches, we share a deep belief in NFTs and what they will enable. Happy to see such a win for the space,” Akhavan wrote on X.
Prominent crypto commentator Beanie also welcomed the news, suggesting it could ignite a new surge in the NFT market.
“OpenSea did a wonderful thing for the NFT industry by facilitating some regulatory clarity. I’m sure it has come at great cost as well. So we should all be thankful for that,” Beanie told his 223,800 followers.
The announcement follows OpenSea’s February 13 statement that it plans to launch a new project token, SEA, though details about the launch date remain undisclosed.
Despite this positive regulatory outcome, OpenSea has faced recent criticism over its paused airdrop reward system, with users accusing it of encouraging wash trading and prioritizing fee collection over community support.
NFT Market Rebounds in 2024 with $8.83B in Sales
The NFT market closed 2024 on a positive note with annual sales surpassing $8.83 billion, 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, trailed 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 hit $15.7 billion in 2021 and soared 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 slump, with sales reaching their lowest point since 2021 in September.
However, a rebound emerged in the final quarter. October sales rose by 18% to $353 million, followed by a six-month high of $562 million in November.
December concluded the year strongly, achieving $877 million in sales—the fifth-highest monthly total of 2024.
