2 SEC Commissioners opposes agency’s NFTs enforcement action

Mark Uyeda and Hester Peirce opposed the SEC’s latest enforcement action against Impact Theory NFT. 

Impact Theory is a YouTube channel and the host of this YouTube channel released its NFT collections in 2021 & successfully raised nearly $30 million. Reportedly the Impact YouTube channel host said to the investors that they would profit from their purchases if Impact Theory would successful in its efforts.

On 28 Aug 2023, The United States Securities Exchange Commission (SEC) announced that the agency charges the Impact Theory NFT project over unregistered securities offerings through the NFTs sell business.

According to the SEC agency, the Impact Theory NFT project founder promised investors that they would make a huge profit if the business succeeded. As per SEC’s arguments, the whole activities are subject to the Securities offerings.

Today we charged Impact Theory LLC, a media and entertainment company headquartered in Los Angeles, with conducting an unregistered offering of crypto asset securities in the form of purported NFTs. Impact Theory raised approximately $30 million from hundreds of investors.

— U.S. Securities and Exchange Commission (@SECGov) August 28, 2023

The independent government agency confirmed that Impact Theory NFT founder agreed to pay a $6.1 million fine & follow the cease & desist order.

In response to this SEC’s enforcement action, the two SEC Commissioners Mark Uyeda and Hester Peirce shared their opinion against the SEC’s action. 

Both the SEC Commissioners claimed that NFT collections are similar to branded watches, paintings, or collectibles and said that American adults have full authority to buy & resell such things. 

“We do not routinely bring enforcement actions against people that sell watches, paintings, or collectibles along with vague promises to build the brand and thus increase the resale value of those tangible items,” the joint statement said

These crypto-friendly SEC officials raised 9 questions in total and also urged to introduce a fresh new category for this sector. 

HESTER PEIRCE is popular in the Crypto sector for her supportive nature for the crypto sector. In this innovative sector, she is known as “crypto mom”. Since 2018, she has been serving the perfect role of SEC commissioner, and her second term expires in 2025. 

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