In a recent development, two prominent commissioners at the US Securities and Exchange Commission (SEC), Mark Uyeda and Hester Peirce, have expressed their dissent against the agency’s enforcement action on Non-Fungible Tokens (NFT).
As reported by Bitcoinist on Monday, the SEC had initiated legal proceedings against media and entertainment company Impact Theory, which resulted in a cease-and-desist order and a substantial financial penalty of over $6.1 million.
Commissioners Uyeda and Peirce, known for their support of innovation within the crypto industry, voiced their disagreement with the SEC’s classification of certain NFT sales as securities.
They emphasized their concerns about applying the Howey analysis, a legal framework used to determine whether an investment contract exists. They called for a deeper examination of the issues surrounding NFTs before pursuing additional enforcement actions.
SEC Commissioners Clash Over NFT Crackdown
The settlement involving Impact Theory centered around allegations of the company engaging in an unregistered securities offering…