Two people sued the SEC: Do I need to register with the SEC to sell NFT? Are Taylor Swift concert tickets considered securities?

This site (120BTc.coM): Court documents indicate that film producer Brian Frye and singer-songwriter Jonathan Mann jointly filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) to clarify whether NFTs fall within the jurisdiction of the agency. He also cited the concert tickets of famous singer Taylor Swift as an example.

Two people sued the SEC: Do I need to register with the SEC to sell NFT?

Brian Frye and Jonathan Mann confirmed this incident through social media X early this morning, emphasizing that the SEC’s actions have threatened the jobs of artists and creators.

“I have believed for many years that the SEC is abusing its authority, so I have sued the SEC in Louisiana federal court, seeking confirmation that the Commission does not have the authority to regulate the sale of NFT art.”

They announced on the 29th Court documents released on the same day stated that artists across the country have recently faced the threat of the SEC treating the sale of their visual or musical art as unregistered securities offerings: Whether they are well-known artists or young creative talents, they are suddenly faced with a strange situation. question: “Do they need to hire a securities attorney to sell their art?”

and added, “They are simply experimenting with a novel and rapidly evolving technology and choosing it as their medium of communication. "

It is reported that the two mainly sought explanations from the court on the following two issues to prevent innocent artists from being persecuted again:

• Do artists need to "register" before selling NFT artworks?

• Do artists have to publicly disclose the “risks” of purchasing their NFT artwork?

Do Taylor Swift concert tickets count as securities?

At the same time, the two lawyers compared NFT with well-known singer Taylor Swift’s concert tickets, arguing that it is absurd to treat NFT as a security: Imagine if Taylor Swift released songs, collectibles or concerts through NFT tickets, in response to which the SEC ordered them destroyed. It sounds far-fetched, but this is exactly what happened at Impact Theory and Stoner Cats.

And added, "And Swift himself promotes its ecosystem by promoting concerts or releasing new songs. Will this involve securities?"

A few weeks ago, SEC Crypto Friendship Committee Hester Peirce also said in an interview, Criticizing the Commission’s arbitrary ruling against Stoner Cats, he believes that the logic of the relevant charges can be applied to almost all non-digital collectibles.

Reviewing the SEC’s NFT enforcement record

In August last year, the SEC filed the first NFT investment contract complaint against the media and entertainment company Impact Theory, saying that investors could expect to profit from the FoundersKey NFT issued by it, and was subsequently fined 610 Ten thousand U.S. dollars.

The following month, animated program production company Stoner Cats was also accused of its Stoner Cats2 NFT being unregistered securities, requiring it to pay a fine of US$1 million and destroy all its NFTs.

It is reported that the SEC passed a total of 784 enforcement actions last year and obtained nearly US$5 billion in fines. In the encryption field, crypto fraud schemes, unregistered crypto asset products, platforms and intermediaries were the most common.

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