The Securities and Exchange Commission last week said it settled with Impact Theory LLC over charges the company conducted an unregistered securities offering when it sold almost $30 million worth of NFTs.
The SEC has been aggressive in its efforts to police crypto markets. The action against Impact Theory, the agency’s first over NFTs, widens the SEC’s sweep over products it views as securities. Industry attorneys expect the SEC to bring more NFT enforcement actions soon.
“I think what the SEC is trying to do is build out the guide rails of how the rules apply to NFTs by simply dropping enforcement actions, rather than going through customary regulatory procedures,” said Andy Lee, an attorney at Foley & Lardner LLP who helps to lead the firm’s Digital Assets, Web3, & NFT practice area. “I think you’re going to see more in the next couple months.”
‘Enforcement 40’ for 2020
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