TechFlow news: U.S. SEC Commissioners Hester Peirce and Mark Uyeda oppose the SEC's enforcement action against the NFT project Stoner Cats 2 LLC (SC2).
The two stated: "We should provide clear guidance for artists and other creators who want to experiment with NFTs, to support their creative efforts and help them build fan communities." The article notes that in certain cases, NFT sales might implicate U.S. securities laws. However, when applying securities regulations in this space, the SEC must be careful to preserve artists' ability to sell their works, build fanbases, and enable those fans to participate in future creative activities.
Previously, the U.S. SEC accused Stoner Cats 2 LLC (SC2) of conducting an unregistered offering of crypto asset securities through NFTs, raising approximately $8 million to fund an animated web series called "Stoner."
According to SEC documents, on July 27, 2021, SC2 sold over 10,000 NFTs to investors at about $800 each, which sold out within 35 minutes. The documents indicate that both before and after the public sale of the Stoner Cats NFTs, SC2’s marketing emphasized specific benefits of owning them. SC2 implemented a 2.5% royalty fee and encouraged individuals to trade the NFTs.
