. I hope the SEC doesn't try to claim all NFT's are securities, that would be way too Draconian, imo.
Based on the argument made by the SEC in the news link above:Quote
The order finds that the NFTs offered and sold to investors were investment contracts and therefore securities. Accordingly, Impact Theory violated the federal securities laws by offering and selling these crypto asset securities to the public in an unregistered offering that was not otherwise exempt from registration.
This means they could use this same argument against almost all NFTs and claim that they are contracts and therefore securities.
The problem is that Impact Theory was very weak and did not object to the decision and agreed to pay a fine and harsh measures, according to the same news:
Quote
Without admitting or denying the SEC’s findings, Impact Theory agreed to a cease-and-desist order finding that it violated registration provisions of the Securities Act of 1933 and ordering it to pay a combined total of more than $6.1 million in disgorgement, prejudgment interest, and a civil penalty. The order also establishes a Fair Fund to return monies that injured investors paid to purchase the NFTs. Impact Theory agreed to destroy all Founder’s Keys in its possession or control, publish notice of the order on its websites and social media channels, and eliminate any royalty that Impact Theory might otherwise receive from future secondary market transactions involving the Founder’s Keys.
This is very bad and will open the door for the SEC to attack more NFTs companies.
