A Song Man and a Law Professor Walk Into the SEC—And Try to Take Down Its NFT Agenda

“Song a Day Man” Jonathan Mann and securities expert Brian Frye have joined forces to challenge the U.S. Securities and Exchange Commission's (SEC) approach to NFT art projects. This unusual partnership is centered around a lawsuit aimed at clarifying the SEC's stance on NFTs and preventing the regulator from indiscriminately targeting NFT art projects.

Brian Frye, a law professor with a keen interest in securities law and novel technologies, laid the groundwork for this legal battle five years ago. In 2019, Frye minted an NFT of a letter he sent to the SEC, in which he provocatively declared his art project to be an illegal, unregistered security. This was a calculated move to force the SEC to clarify whether his NFT was indeed a security. Despite several self-incriminating correspondences from Frye, the SEC never responded.

Meanwhile, the SEC has taken legal action against various NFT projects, claiming they qualify as unregistered securities. However, the agency has not provided a clear definition of which types of NFT projects are considered legal and which are not, leaving the industry in a state of uncertainty.

Earlier this week, Frye and Mann filed a federal lawsuit against the SEC to compel the agency to articulate its position on the legal status of NFTs. This lawsuit seeks to address the ambiguity and protect the nascent NFT industry from the SEC's selective enforcement actions. By challenging the regulator in this manner, Frye and Mann hope to establish a clear legal framework for NFT art projects, ensuring that artists and creators can operate without fear of arbitrary legal repercussions.

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