SEC Ends Investigation into OpenSea, Just After NFT Platform Confirms SEA Token Airdrop
The U.S. Securities and Exchange Commission (SEC) has ended its investigation into NFT marketplace OpenSea, weeks after the platform announced plans to airdrop SEA tokens to U.S. users, according to Bloomberg.
The announcement comes just hours after Coinbase also confirmed that the SEC had decided to dismiss its lawsuit against the cryptocurrency exchange. The moves come as the SEC is withdrawing a number of crypto-related lawsuits and investigations, seemingly shifting away from the hardline stance it adopted under former Chairman Gary Gensler.
Back in August, OpenSea received a “Wells notice” from the SEC, a formal document that signals the possibility of the agency taking legal action against the company. OpenSea responded, and now the SEC has officially confirmed that no enforcement action will be taken.
This comes as the SEC is re-adjusting its policies toward the cryptocurrency industry under the leadership of Acting Chairman Mark T. Uyeda, along with Commissioner Hester Peirce, who is tasked with leading the “cryptocurrency task force.” The task force is working to develop new guidelines for the industry and has held numerous meetings with relevant companies to discuss issues such as approving “staking ETFs” and other policies.
The SEC’s policies, particularly regarding cryptocurrency airdrops, remain in a regulatory gray area. This has led to controversy within the cryptocurrency community, with many U.S. lawmakers, such as House Financial Services Committee Chairman Patrick McHenry, calling for clarity on airdrop regulations to avoid harming domestic investors.
The SEC’s announcement that it would not recommend enforcement action against OpenSea is significant, especially after the platform was accused of listing non-fungible tokens (NFTs) as unregistered securities. Devin Finzer, CEO of OpenSea, has called the SEC’s action an attack on artists and creators and said he will fight to protect the platform.
The SEC has also withdrawn investigations into several other crypto companies and projects in the past, including Paxos’ BUSD stablecoin and Ethereum’s transition to proof-of-stake, often referred to as “Ethereum 2.0.”
The recent moves from the SEC could signal a new phase for the crypto industry, with policies and regulations being adjusted to better suit the evolving market.
