- This is the regulator’s first-ever NFT-related enforcement measure
- Impact Theory sold NFTs in three tiers, making almost $30M
- It assured investors would make a profit, making its NFTs securities
The US Securities and Exchange Commission ordered the California-based company Impact Theory, an issuer of NFTs, to compensate investors who bought its products in the regulator’s first-ever NFT-related enforcement measure, CoinDesk reported. The SEC argued the NFTs had been sold as unregistered securities.
The action isn’t expected to have very serious consequences because the SEC’s findings do not indicate it considers all NFTs to be securities.
The sellers promised a profit
Impact Theory sold NFTs in three tiers, making almost $30 million from the transactions in total. The reason the tokens qualify as securities is that the company promised investors would make a profit off them based on their “tremendous value,” the SEC order stated.
According to a statement by the regulator, Impact Theory encouraged potential buyers to see the purchase of a Founder’s Key NFT as an investment in the digital asset market. The company stated that the investors would make a profit if its efforts were successful.
Company will pay $6M+ in penalties
Impact Theory has agreed to destroy any NFTs it still holds and establish a fund to compensate investors who bought their NFTs. In addition, Impact Theory has been ordered to pay federal regulators penalties exceeding $6.1 million.
Crypto-friendlier regulation in sight?
With US presidential elections coming up in 2024, market observers and stakeholders are holding their breath for positive news. Unfortunately, the candidates with the most support don’t seem to be fans of crypto. The runners-up embrace it, but their electoral support is still quite low.
Donald Trump is mute on crypto
Donald Trump has made millions from an NFT collection and rumor has it that he holds crypto assets worth tens of millions. Still, he hasn’t uttered a word on the subject. Runner-up Ron DeSantis has expressed support for crypto, but only 15% of Republican voters would support him according to the latest data.
Biden has been anything but supportive
Democratic runner-up Robert F. Kennedy Jr. is supportive of crypto, but he’s also expected to get around 13% of votes. Joe Biden still has the majority of Democratic support with 65% of voters saying they will vote for him in 2024. However, the most restrictive crypto regulations were approved during his tenure.
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