OpenSea CEO claims SEC regulation is excessive, looks forward to a more balanced crypto regulatory framework
Background: Devin Finzer, co-founder and CEO of OpenSea, pointed out that the enforcement approach of the U.S. Securities and Exchange Commission (SEC) during the Biden administration has cast a persistent "regulatory shadow" over the crypto industry. He believes the SEC has unfairly targeted good actors within the industry, including OpenSea.
Key Event: In 2024, the SEC issued a Wells Notice to OpenSea, accusing its NFT marketplace of operating as an unregistered securities exchange. Finzer criticized the SEC's "regulating through enforcement" approach and stated that OpenSea is prepared to fight back. With the appointment of the new chairman Paul Atkins, Finzer is hopeful for a more balanced regulatory framework.
Policy Changes: During the Trump administration, the SEC scaled back enforcement actions against multiple crypto companies, withdrawing legal challenges against Coinbase, Kraken, Yuga Labs, OpenSea, and Uniswap, and terminating the long-running lawsuit against Ripple.
Market Impact: The SEC's crackdown intensified the market downturn following the FTX collapse, causing a significant decline in NFT trading volume and leading OpenSea to lay off 50% of its staff in 2023. Nevertheless, the NFT sector continues to innovate in gaming and art collectibles, with OpenSea also exploring business diversification.
Significance: Finzer emphasized the uniqueness and innovative potential of digital assets, considering the realization of digital ownership a major breakthrough in the history of the internet.