The U.S. Securities and Exchange Commission obtained a $750,000 settlement from Flyfish Club LLC over its offer and sale of securities through the form of non-fungible tokens, a unique digital identifier on the blockchain used to certify ownership.
Nicolle Lafosse, of counsel at Diaz Reus in Miami, specializes in technology law, including blockchain matters, and is not involved in the case. She said there are different reasons and implications for someone not wanting to register digital assets as a security, such as a business becoming synonymous with the traditional market and causing the “hype to die down.”
“You become not that novel and not that trendy, which are some of the things consumers are looking at,” Lafosse said. “But if you can register as a security, you could use your NFT and have those royalties. But if you don’t want to be a security, from a legal standpoint, use your NFT as a token of participation but have all the commercial aspects through a different vehicle.”
