SEC Fines Stoner Cats NFT Project $1 Million, Orders Destruction of NFTs for Acting as Unregistered Securities
-
The SEC ordered the Stoner Cats NFT project to pay $1 million in fines and destroy its NFTs for being unregistered securities.
-
This is the SEC's second action against NFTs, and it may have broad consequences for the industry by asserting the SEC's jurisdiction.
-
The Stoner Cats NFTs funded an animated series and offered royalties when the NFTs were resold.
-
The royalty feature incentivized trading the NFTs, which the SEC said made them like securities.
-
Two SEC Commissioners dissented, saying this action could broadly chill fan crowdfunding efforts like NFTs.
![](https://cdn.vox-cdn.com/thumbor/OPqeqPRGGd1RS4fZ3rPueoSN6BY=/0x0:4800x3200/1200x628/filters:focal(2400x1600:2401x1601)/cdn.vox-cdn.com/uploads/chorus_asset/file/24918960/1482566837.jpg)