Judge Greg Girard Guidry of the U.S. District Court for the Eastern District of Louisiana. Photo: Diego M. Radzinschi/ALM Artists Sue SEC in Preemptive Lawsuit Over Whether NFTs Are Securities
"The SEC has gone beyond what people traditionally think of as investment contracts or securities, and they have now started encroaching into the art world, just because the art in their previous cases happened to be digital," Jason Gottlieb, a partner at Morrison Cohen, said in an interview.
July 30, 2024 at 12:47 PM
4 minute read
What You Need to Know
- Two nonfungible token artists have filed a complaint against the U.S. Securities and Exchange Commission.
- An attorney for the artists said the SEC bypassed Congress without authorization to expand the reach of SEC v. Howey.
- An expert not involved in the matter said he does not believe the standards set forth in Howey are intended to include a straightforward sale of art-based-NFTs without additional rights that would liken such a purchase to an investment contract.
Two nonfungible token artists have filed a complaint against the U.S. Securities and Exchange Commission, asking a federal district court in New Orleans to clarify whether NFTs fall under the jurisdiction of Wall Street's largest regulator as unregistered securities.
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