The Securities and Exchange Commission’s (SEC) enforcement strategy, which has long loomed over the cryptocurrency industry like a storm cloud, is coming under scrutiny once again. Devin Finzer, the co-founder and CEO of OpenSea, one of the world’s leading NFT marketplaces, has openly criticized the SEC’s previous approach, stating it unfairly targeted legitimate players in the crypto space. In a recent conversation with Cointelegraph, Finzer voiced his concerns, describing the agency’s past tactics as overly generic and detrimental to innovation.
A Shift in Regulatory Winds
Under the Biden administration, the SEC’s enforcement actions were perceived as heavy-handed, with a broad-brush approach that failed to differentiate between various digital assets. This stance resulted in a Wells notice issued to OpenSea in 2024, signaling potential enforcement action against the platform for allegedly operating as an exchange for unregistered securities. Finzer was vocal in his opposition, arguing that this “regulation by enforcement” strategy stifled innovation and unfairly painted all crypto firms with the same brush. For a deeper dive into the regulatory implications, see our coverage of the SEC’s latest guidance.
Fast forward to today, and there’s a palpable shift in the regulatory atmosphere as the SEC, now under the leadership of Chair Paul Atkins, appears to be adopting a more nuanced approach. The agency has notably withdrawn several legal challenges, including those against major players like Coinbase, Kraken, and even OpenSea itself. This development marks a significant policy shift from the previous era of enforcement under former Chair Gary Gensler, suggesting a possible thaw in relations between the SEC and the crypto world.
An Industry in Transition
The crypto industry has been navigating turbulent waters since the FTX collapse in November 2022, which triggered a market downturn and significantly impacted investor confidence. NFT trading volumes, once riding high in the euphoria of 2021, have since plummeted, forcing companies like OpenSea to make tough decisions, including laying off half of its workforce in 2023. Yet, Finzer remains optimistic about the sector’s future, highlighting ongoing innovation particularly in gaming and art collectibles.
OpenSea is not standing still. The platform is exploring new horizons, aiming to evolve into a comprehensive hub for on-chain trading. Finzer’s vision is clear: to harness the unique power of digital ownership that blockchain technology offers. “For the first time in the history of the internet, people have the ability to own digital stuff in a real way,” he enthuses. This vision underscores a broader trend within the industry, as platforms seek to diversify and adapt in an ever-changing landscape. As explored in our recent coverage of US crypto groups urging the SEC for clarity on staking, the call for regulatory clarity is a common theme across the industry.
The Road Ahead
The SEC’s evolving stance, coupled with a new regulatory framework on the horizon, could potentially reignite investor interest and fuel further innovation in the crypto space. However, questions remain about how these changes will unfold and whether they will provide the clarity and support needed for the industry to thrive.
The political landscape is also a factor not to be ignored. During the 2024 election cycle, the crypto industry threw its weight behind pro-crypto candidates, with significant financial backing for Donald Trump, who vowed to transform the United States into a global crypto powerhouse. As these political and regulatory dynamics continue to play out, the crypto community is watching closely, poised to seize new opportunities or brace for fresh challenges.
In this climate of cautious optimism, the crypto world stands at a crossroads. Will the SEC’s new direction foster the growth and innovation that advocates like Finzer hope for, or will lingering uncertainties keep the industry in a state of flux? Only time will tell, but one thing is certain: the conversation around crypto regulation is far from over.
Source
This article is based on: Good actors were ‘unfairly targeted’ by SEC — OpenSea's CEO
Further Reading
Deepen your understanding with these related articles:
- UK’s FCA Seeks Public and Industry Views on Crypto Regulation
- U.S. Congress Braces for Intense Debate Over Crypto Legislation This Summer (openai)
- SEC Ditches PayPal’s PYUSD Probe, Removing Key Regulatory Hurdle for Its Stablecoin
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
