SEC Opens A New Can Of Worms With NFT Enforcement Action

The SEC's first enforcement action against NFT issuers has raised questions and uncertainties regarding regulations and legalities surrounding NFTs, including whether they should be classified as securities and how marketplaces should be regulated.

forbes.com

Relevant topic timeline:

8/28/2023

In a first, the SEC says NFTs offered by an L.A.-based entertainment firm are securities. Here’s how that could ripple throughout the industry

The Securities and Exchange Commission (SEC) has charged Impact Theory, an entertainment company, with conducting an unregistered offering of securities through non-fungible tokens (NFTs), establishing that NFTs fall under the agency's jurisdiction.

8/28/2023

For the first time, the SEC has charged an NFT project with selling unregistered securities

The US Securities and Exchange Commission (SEC) has taken its first enforcement action against a company for selling unregistered securities in the form of non-fungible tokens (NFTs), with Impact Theory settling with the SEC for over $6.1 million and decommissioning its Founder's Key NFTs.

8/29/2023

Crypto lawyer about SEC: ‘Problematic to imply all NFTs are securities’

The SEC's enforcement action against Impact Theory for selling unregistered securities as NFTs has raised concerns and sparked debate about the classification of NFTs as securities, with some arguing that it could have negative implications for the NFT industry and hinder innovation.

9/13/2023

SEC Fines Stoner Cats NFT Project $1 Million, Orders Destruction of NFTs for Acting as Unregistered Securities

The Securities and Exchange Commission (SEC) has declared the Stoner Cats NFTs as unregistered securities, leading to the company paying fines and destroying all NFTs in its possession, which could have far-reaching consequences for the industry as a whole. The NFTs were intended to fund an animated web series and offered as an investment opportunity, with the SEC raising concerns about the NFTs' royalties and their implications for other NFT projects. SEC Commissioners Hester Peirce and Mark Uyeda dissented from the enforcement action, suggesting that clearer guidelines are needed for artists.

Topics

Posted 8/31/2023, 11:15:42 AM

SEC Opens A New Can Of Worms With NFT Enforcement Action

forbes.com

Relevant topic timeline:

8/28/2023

In a first, the SEC says NFTs offered by an L.A.-based entertainment firm are securities. Here’s how that could ripple throughout the industry

8/28/2023

For the first time, the SEC has charged an NFT project with selling unregistered securities

8/29/2023

Crypto lawyer about SEC: ‘Problematic to imply all NFTs are securities’

9/13/2023

SEC Fines Stoner Cats NFT Project $1 Million, Orders Destruction of NFTs for Acting as Unregistered Securities