SEC Closes OpenSea Investigation

CRYPTO
SEC Closes OpenSea Investigation

The U.S. Securities and Exchange Commission (SEC) has closed its investigation into OpenSea, easing pressure on the NFT market. OpenSea’s founder and CEO, Devin Finzer, announced the decision on social media, calling it a win for NFT creators and the broader crypto industry. The SEC had issued a Wells notice against OpenSea in August 2024, suggesting it might pursue enforcement action, alleging the platform operated as an unregistered securities marketplace.

This move follows the SEC’s negotiations to drop its lawsuit against Coinbase, signaling a shift in regulatory pressure. Finzer emphasized that classifying NFTs as securities would have hindered innovation. Magic Eden’s chief business officer, Chris Akhavan, echoed this sentiment, calling it a victory for the NFT space.

Following the announcement, NFT marketplace LooksRare saw a spike in activity, with its token, LOOKS, experiencing a fivefold increase in active addresses, according to TheTie.

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FINANCE
Berkshire’s Cash Soars to $334B

Warren Buffett’s annual letter to shareholders reflected on Berkshire Hathaway’s success over the past 60 years while addressing future leadership and government responsibility. He assured investors that his chosen successor, Greg Abel, is ready to lead and seize investment opportunities. Buffett noted that Berkshire’s tax payments have surged from zero in 1965 to $26.8 billion last year, surpassing tech giants. He urged the government to spend wisely and maintain financial stability.

Berkshire’s cash reserves have nearly doubled to $334.2 billion after selling Apple and Bank of America stocks. Buffett made key acquisitions, spending $3.9 billion on utilities and $2.6 billion to acquire the rest of Pilot truck stops, while increasing investments in Japanese conglomerates. Despite ample funds, he reaffirmed his stance against dividends.

At 94, Buffett announced a shorter shareholder meeting and acknowledged using a cane. Berkshire’s Class A stock remains the most expensive, closing at $718,750 per share.

TECH
U.S. Chipmakers Hit by China Controls

U.S. chipmakers are feeling the impact of Washington’s export controls on China, with companies like Applied Materials and Lam Research reporting significant drops in revenue from the Chinese market. Applied Materials saw a 25% decline in China revenue last quarter, while Lam Research’s sales to Chinese customers fell 10%. This downturn follows years of record-breaking revenue driven by the AI boom, despite earlier warnings that U.S. sanctions could harm business.

China remains a dominant player in the semiconductor industry, producing mature chips essential for consumer electronics and vehicles. The U.S. has tightened restrictions on chip sales and pressured allies like Japan and the Netherlands to follow suit. Meanwhile, China is pushing for self-sufficiency, encouraging domestic firms to use local equipment.

While regions like India and Southeast Asia aim to grow their chip sectors, analysts argue that replacing China’s scale and demand is nearly impossible. The global chip industry faces long-term uncertainty.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.