Stoner Cats Settlement Signals Intensifying SEC Interest in NFT Offerings
Highlights
The SEC found that Stoner Cats conducted an unregistered securities offering to early NFT buyers
In the settlement agreement, the SEC highlights secondary market sales and programmatic royalties paid to the NFT offeror
The dissenting SEC Commissioners drew ties to Star Wars collectibles sales in questioning the potentially limitless application of Howey
The Securities and Exchange Commission (SEC) announced a settled enforcement action last month against Stoner Cats 2 LLC (SC2). The SEC had alleged that SC2’s sale of non-fungible tokens (NFTs) to fund production of an animated web series constituted an unregistered offering of crypto asset securities in violation of the Securities Act of 1933. SC2 neither admitted nor denied wrongdoing in the September settlement order, which does not include any allegation of fraud.
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