The Securities and Exchange Commission (SEC) implementation approach to crypto companies has left a lasting “regulation overhang” within the industry, according to Devin Finzer, co-founder and CEO of Openea.
In a conversation with the cointelegraph, Finzer said that during Biden's administration the agency was not fair to target good actors in the crypto space, including the Opensea. “There are all kinds of digital ownership, you know, you shouldn't treat everything the same. That's clear. But I think the strategy that the previous SEC is taking is kind of it, you know, very, very generic.”
The SEC has released a notice of Wells – a formal notice that is often a signal to the implementation of the action – in the opening of 2024, claiming that the NFT market runs as an exchange for unregistered security. At this time, Finzer criticized the SEC for the approach of “regulation by implementation” and said the opening was ready to “stand and fight.”
https://www.youtube.com/watch?v=cpbgt_dtmvy
In the SEC under the new leadership of Chair Paul Atkins, Finzer hopes for a more balanced framework of regulation. “Good crypto regulation needs to be balanced, kind of, protecting consumers but also maintaining modernization,” Finzer said. “It's not just a big-sized-all problem, is it?”
Under the Trump administration, the SEC has scaled implementation actions against many crypto companies, which marked a US policy transfer after years of actions implemented by former Chair Gary Gensler.
For example, the agency has eliminated legal challenges against the exchange of Coinbase and Kraken, NFT's Yuga Labs and Opensea companies, and the decentralized financial financial protocol – most of them opened during Gensler's term. The SEC has even removed its case against Ripple.
During the 2024 US election cycle, the crypto industry was widely back-candidate Donald Trump, who promised to make the United States “the planet's crypto capital.” Overall, the Committees of Crypto Political Action, or PAC, have given more than $ 119 million to the coffers of pro-crypto candidates, helping to shape the election.
Related: Crypto problem continues with the new regulations in spite of new regulations
NFTS: Low trading volume, high change
SEC Crackdown in crypto firms weighed in the collapse of markets following the collapse of the FTX in November 2022, driving investors far from crypto products such as unimaginable tokens
Since then, the NFT trading volume has fallen from the 2021 climax, affecting protocols and platforms such as Opensea. In 2023, the company laid 50% of its staff in the midst of market disturbance.
Finzer said the NFT space is still evolving, with change and new living applications – especially in the gaming industry and art collections. Despite this, the Opensea began exploring other areas, looking to change the business to become a destination for all onchain trade beyond the NFT.
“I mean, for the first time in the history of the Internet, people have the ability to own digital objects, right, in a real way,” Finzer said. “[…] You can move them between different applications and bring them to you wherever you go to the Internet. And that's something really strong. “
Related: Opensea declined NFT AirDrop Rumors, website calling a test page
