In “Statement on Stoner Cats 2, LLC,” Commissioners Hester M. Peirce and Mark T. Uyeda express their disapproval of the U.S. Securities and Exchange Commission’s (SEC) handling of a non-fungible token (NFT) settlement. The commissioners argue that applying the Howey investment contract analysis in this particular case lacks a clear limiting principle and could stifle artists’ creativity. They propose that the SEC should provide clear guidelines for artists and creators working with NFTs to support their creative endeavors.
The case under scrutiny involves Stoner Cats, a project that used fan crowdfunding to finance an animated series production. Stoner Cats sold NFTs to the public, offering purchasers various benefits such as character images, series access, an online community, and future entertainment content. The commissioners liken these NFTs to collectibles from the 1970s Star Wars era and argue that the enforcement action discourages content creators from utilizing social networks for work distribution.
Commissioners Hester M. Peirce and Mark T. Uyeda’s article can be found on the U.S. Securities and Exchange Commission’s website at [https://www.sec.gov/news/statement/peirce-uyeda-statement-stonercats-091323?utm_medium=email&utm_source=govdelivery#_ftn8](https://www.sec.gov/news/statement/peirce-uyeda-statement-stonercats-091323?utm_medium=email&utm_source=govdelivery#_ftn8).
Analyzing the trustworthiness of the original article, there is no indication of political bias or any hidden agenda. The authors are commissioners of the SEC, which adds credibility to their statements. However, it is important to note that the article is not purely objective news reporting. While it provides factual information about the case and the authors’ arguments, it also contains their opinions and perspectives on the matter.
This article is 90% likely factual news based on my current analysis.
