SEC Issues First Enforcement Action Targeting NFTs

The agency ruled Impact Theory’s NFTs were sold as unregistered securities.

U.S. regulators ordered a Los Angeles-based company that issued non-fungible tokens to compensate investors who bought the NFTs, arguing that the transactions were illegal unregistered securities offerings. It was the U.S. Securities and Exchange Commission’s first NFT-related enforcement action.

The SEC’s findings do not suggest regulators consider all NFTs to be securities, limiting the potential consequences of the action. Impact Theory, a California-based media company, raked in nearly $30 million selling three tiers of NFT offerings the SEC deemed to be securities, according to a Monday

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