SEC Commissioners Hester M. Peirce and Mark T. Uyeda criticized the regulator’s enforcement action against the Flyfish Club non-fungible token (NFT) collection.
In a Sept. 16 letter, the commissioners argued that securities laws are not applicable in this case.
Flyfish Club, a dining establishment, sold NFT as exclusive access to a future restaurant and bar. The club created about 3,000 NFTs, selling over half at $8,400 for regular NFTs and $14,300 for Omakase NFTs, raising $14.8 million. It also earned $2.7 million in secondary sale royalties.
As a result, the SEC charged Flyfish Club with conducting an unregistered offering of crypto asset securities in the form of NFTs, settling the case with a $750,000 civil penalty and a commitment to comply with a cease-and-desist order.
The commissioners stated:
“By its very nature, Omakase dining requires a deep level of trust. Americans should be able to extend a similar trust to our…
