SEC charges Impact Theory for ‘unregistered NFT offering,’ expanding enforcement actions to NFT market

The Securities and Exchange Commission (SEC) charged LA-based media and entertainment firm Impact Theory with conducting an unregistered offering of crypto asset securities in the form of non-fungible tokens (NFTs). According to an official press release by the SEC, the company raised approximately $30 million from hundreds of investors through their offering, violating federal securities laws.

The regulatory landscape around NFTs has been of increasing interest to the SEC. As  CryptoSlate reported in March 2022, the SEC had begun investigating NFT marketplaces and creators for possible breaches of its securities rules. The focus was mainly on the use of fractionalized NFTs, which was seen as a way to sell unregistered securities. Now, the SEC’s charges against Impact Theory appear to be a concrete manifestation of those regulatory concerns.