SEC Commissioners Peirce and Uyeda issue dissent on Stoner Cats ruling, compare NFT to 1970s Star Wars collectibles, and believe legal clarity lies in a galaxy far, far away

The SEC’s September 2023 settlement with Stoner Cats 2, LLC became the agency’s second enforcement action against an NFT project, after the Commission said the company’s NFT sales were an unregistered offering of securities. The case centered on Stoner Cats NFTs sold to finance an adult animated web series, with the SEC finding that buyers were led to expect profits from the producers’ efforts and that the offering therefore fit the Howey test for an investment contract.

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More coverage

• Collecting Enforcement Actions: Statement on Stoner Cats 2, LLC (sec.gov)
• The SEC's Second NFT Enforcement Action: SEC v. Stoner Cats 2 (akingump.com)
• SEC's First Two NFT Enforcement Actions Cast Shadow of Ambiguity (jdsupra.com)
• NFT Cat Fight: SEC Offensive Against NFTs Continues with Stoner ... (afslaw.com)
• Stoner Cats, the S.E.C., and NFTs: A Paws for Concern (news.law.fordham.edu)

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