U.S. Securities and Exchange Commission (SEC) Commissioners Hester Peirce, Mark Uyeda disputed the agency’s enforcement action against NFT sales deemed securities.
Earlier, the SEC accused Impact Theory of conducting an unregistered security token sale via NFT, and the project was ordered to pay a $6.1 million fine and agree to cease its existing business practices.
The two commissioners wrote that the NFT sales in question did not meet the Howey test, adding that the enforcement action pushes the SEC into unfamiliar territory because it marks the first such enforcement against an NFT issuer.
Hester Peirce said that NFT is not an asset class with a single use case, and that different NFTs have multiple use cases. Therefore, the SEC may need new categories to determine how securities laws apply to offers and sales.