1. SEC Charges
2. Commissioners' Criticism
3. Settlement Consequences

SEC Commissioners have criticized the agency for forcing a $750,000 settlement on the FlyFish Club restaurant over NFTs.

SEC Charges

The SEC claimed that FlyFish Club conducted an unregistered offering of crypto asset securities by selling 1,600 NFTs to US investors, raising $14.8 million, according to a cease and desist order dated September 16.

Commissioners' Criticism

SEC Commissioners Hester Peirce and Mark Uyeda criticized the enforcement action, arguing the FlyFish NFTs were simply a different way to sell memberships and didn't trigger securities laws.

Settlement Consequences

FlyFish Club agreed to destroy any remaining NFTs and not to accept future royalties from NFT sales without admitting or denying the SEC's claims. This comes amid similar charges by the SEC against NFT projects Impact Theory and Stoner Cats 2 over the past 13 months.

The settlement with the SEC over FlyFish Club underscores tensions between regulators and innovative NFT projects, prompting calls for greater experimental freedom and development guidelines.