NFTs
Two Artists Sue SEC Over NFT Regulation
There is still confusion in the regulatory arena in the US: two artists have sued the SEC, comparing their NFT Art sold on the secondary market to tickets for a Taylor Swift concert.
Regulation: Artists rebel against the SEC over the confusion surrounding NFTs
Two artists processed the Securities and Exchange Commission (SEC) from the USA to the confusion regarding NFTs.
Specifically, the two plaintiff artists, Brian Frye and Jonathan Mannrequested clarification on security laws and Non-Fungible Tokens.
In practice, their lawyers asked whether Cryptocurrency artists are required to “register” their NFT artwork before selling it to the public. Not only that, another clarification concerns the question of whether artists must disclose information about the “risks” of purchasing their art.
The issue was raised after some actions could trigger US security laws when creating and selling art NFT.
The lawyers then did a comparison between selling NFT Art on the secondary market and Taylor Swift concert tickets, which are often also sold on the secondary market.
In this sense, for Frye and Mann it would be absurd for the SEC to classify NFTs as securities.
NFT Regulation and the SEC Lawsuit by Crypto Artists
Speaking of art, just like Taylor Swift sells concert tickets on the secondary market and publishes announcements to promote these events, both crypto artists should do the same with their NFTs.
In both cases, the US SEC is not obliged to intervene.
Here is what the document states:
“While Jonathan Mann and Brian Frye are different from Taylor Swift in many ways, in the context of this case they are in exactly the same position. They are artists and want to create and sell their digital art without the SEC investigating or prosecuting them.”
The sector in crisis compared to the 2021 boom
Recently, the NFT market was analyzed which still appears to be in deep crisis, at least compared to the 2021 boom.
And indeed, in January 2021, the total monthly trading volume of NFTs on the market surpassed $100 million for the first time.
Furthermore, by January 2022, a year later, the same figure had risen to over six billion dollars, registering a 60x increase.
After this incredible growth, since 2023 there has been a long period of decline that seems to still be ongoing.