NFT artists Brian Frye and Jonathan Mann sue the SEC to clarify whether NFTs are securities, comparing them to Taylor Swift tickets.
Points
- Lawsuit seeks court clarification on whether NFTs fall under SEC jurisdiction.
- Complaint cites the SEC’s recent actions against NFT projects.
- Artists argue the SEC’s approach threatens their livelihoods.
Artists Challenge SEC Over NFTs
NFT artists Brian Frye and Jonathan Mann have filed a lawsuit against the U.S. Securities and Exchange Commission （SEC）, seeking clarity on whether NFTs （non-fungible tokens） fall under the agency’s jurisdiction. The lawsuit, filed in the U.S. District Court in the Eastern District of Louisiana, follows the SEC’s recent enforcement actions against NFT projects, which have raised concerns among artists and creators.
Impact on Artists
The SEC’s first NFT charges were brought against the YouTube channel and podcast studio Impact Theory, followed by a lawsuit against Stoner Cats 2 LLC. Both cases ended in settlements. The SEC claimed these NFTs were investment contracts and thus securities.
Lawyers for Frye and Mann argue that the SEC’s approach threatens the livelihoods of artists experimenting with digital art. They fear that artists nationwide will need to hire securities lawyers just to sell their art.
Taylor Swift Tickets Comparison
The lawsuit draws a comparison between NFTs and Taylor Swift tickets, arguing that if Swift’s tickets and collectibles were deemed securities, the implications would be far-reaching. The plaintiffs highlight the SEC’s actions as inconsistent and potentially damaging to the creative community.
Mann and Frye’s lawyers state, “Imagine if the SEC found that Taylor Swift songs or collectibles were securities （or were securities if merely released in NFT form）, and ordered them to be destroyed. It sounds far-fetched, but that is exactly what has happened to Impact Theory and SC2.”
Industry Reactions
The crypto community has voiced strong support for the lawsuit. Katherine Minarik, chief legal officer at Uniswap Labs, tweeted, “We have reached the point where the SEC’s application of securities laws is so arbitrary and unlawful that artists are compelled to sue the SEC directly to protect their livelihoods. The SEC is broken.”
The Blockchain Association also weighed in, asserting that the SEC does not have authority over NFT art and criticizing the expectation for artists to hire lawyers for art sales.
解説
- Legal Uncertainty: The lawsuit aims to address the ambiguous regulatory environment surrounding NFTs, which has significant implications for artists and creators.
- Comparative Analysis: Using Taylor Swift tickets as an example underscores the potential overreach of the SEC’s regulatory approach.
- Community Backlash: The strong reaction from the crypto community highlights the broader concerns about the SEC’s stance on NFTs and its impact on innovation and creativity.