The United States Securities and Exchange Commission (SEC) has officially closed its probe of OpenSea, the world’s largest non-fungible token (NFT) marketplace, and settled a case against Coinbase, the world’s largest cryptocurrency exchange. This is great news for the NFT and crypto space and can be interpreted as the beginning of better regulation by this administration.
OpenSea’s Investigation Has Ended
SEC probing of OpenSea began in August 2024 when the regulator issued a Wells notice. OpenSea was said to be facilitating the sale of unregistered securities non-fungible tokens or NFTs on its platform.
OpenSea co-founder and CEO Devin Finzer tweeted on Feb. 21, 2025, that the investigation had concluded. He characterized the action as a tremendous victory for creators in the NFT space and added that treating NFTs as securities would be an innovation killer.
Finzer added, “All creators, large and small, should be able to create as unencumbered as possible.” It is also the opinion of business competitors like Chris Akhavan, Magic Eden’s head of business operations, who welcomed the ruling as one that is in the best interest of the wider NFT universe.
Coinbase Lawsuit Dismissed
Apart from dismissing its OpenSea case, the SEC also resolved to have its action dismissed against Coinbase. The June 2023 complaint charged Coinbase as an unregistered dealer in securities. Coinbase executive vice president of legal at Coinbase Paul Grewal said the SEC has agreed in principle to have the action dismissed and would be voted on by the Commission within a couple of days.
According to Coinbase CEO Brian Armstrong, we are at the threshold of a political leadership shift at the SEC, also setting the tone that regulation terms are loose in the Trump administration. To him, “What changed over those two years was the political leadership at the SEC.”
Implications for the Crypto Industry
OpenSea case dismissal and Coinbase case closure are both a possible blueprint for cryptocurrency and NFT regulation. Industry players are convinced that such rulings are poised to free development and expansion and bring to an end the threat of over-regulation by regulatory authorities that previously brought the industry to the verge of collapse.
The NFT market rebounded, with overall sales reaching a record of over $8.83 billion in 2024, surpassing the year before. The rebound comes after a challenging year of sluggish sales and official disapproval. With more institutional channels of regulation still opening up, crypto and NFT space can still grow and develop. As the space continues to grow, investors note the impact these have on policy regulation in coming years.
