The SEC has wrapped up its investigation into two of the crypto sphere’s biggest exchanges – Coinbase and OpenSea

In 2023, the SEC pursued legal action against the United States’ biggest crypto trading platform, Coinbase, on the grounds of ‘acting as an unregistered broker’.

The Securities and Exchange Commission (SEC) has reportedly concluded its investigations into two major crypto exchanges – Coinbase and OpenSea.

In March 2023, the SEC filed a lawsuit against Coinbase, alleging that the United States' largest crypto trading platform acted as an “unregistered broker.”

Coinbase CEO Brian Armstrong took to Twitter to announce the latest development. According to Armstrong, the regulatory body has agreed to drop the litigation against Coinbase after years of legal proceedings.

The development comes after Coinbase faced immense scrutiny from the SEC over the classification of certain tokens on its platform as unregistered securities. The crypto exchange has maintained that the tokens in question are not securities.

Now, with the SEC staff recommending that the Commission dismiss the case, the final approval is expected next week, paving the way for a swift resolution in the long-standing legal battle between Coinbase and the SEC.

Coinbase CEO Armstrong also took a jab at the previous SEC administration and its approach to the crypto industry, alluding to the regulatory clarity that is now emerging.

"Millions of your taxpayer dollars spent, and irreparable harm done to the country," Armstrong tweeted, adding that the development marks a significant win for the crypto community.

NFT Marketplace OpenSea Escapes SEC Scrutiny

In another major development, the SEC has also agreed to close its legal proceedings against OpenSea, the world's largest non-fungible token (NFT) marketplace.

The regulatory body began investigating OpenSea in 2022 over similar allegations as Coinbase - whether the NFT platform acted as an unregistered securities broker and if NFTs themselves should be classified as securities.

The classification of NFTs as securities would have had far-reaching implications for the digital collectibles industry, potentially subjecting NFT marketplaces to stringent regulations.

However, according to a report by Axios, the SEC is leaning against classifying NFTs as securities, which is being viewed as a positive development within the NFT community.

"This is a win for everyone who is creating and building in our space," tweeted NFT influencer Andrew Wang, commenting on the latest development in the SEC's NFT investigation.

"Trying to classify NFTs as securities would have been a step backward—one that misinterprets the law and slows innovation. Every creator, big or small, deserves a fair shot at success.”

The latest developments in the SEC's investigations into Coinbase and OpenSea are expected to bring some much-needed regulatory clarity to the crypto exchange and NFT markets, respectively.