Artists File Lawsuit Against SEC Over NFTs Considered Securities

Two artists, Brian Frye and Jonathan Mann, have filed a lawsuit against the US securities regulator to clarify whether non-fungible tokens (NFTs) fall under the commission’s jurisdiction.

The plaintiffs’ attorneys are seeking clarification on whether creating and selling NFT art would be considered a trigger for US securities laws.

They have posed questions about the need for registration and public disclosures of risks when selling NFT art in a court filing dated July 29.

The attorneys have cited Taylor Swift concert tickets as an example and argued that considering NFTs as securities would be absurd, pointing to the fact that Swift does not register her concert tickets or make public disclosures about the risks of buying them.