A full 2 years on from its original launch, and the fleet-footed SEC has raced into action to declare the Stoner Cats NFT collection a security. Despite the ruling however, several prominent members of the commission have vocally criticized the move.
The celebrity-driven NFT project headed up by Mila Kunis, came unstuck due to the promises it made to holders of its NFTs. As such, the digital collectibles it sold not only offered cartoon artworks and gated access to its TV show, but also a share of revenues. According to the SEC, this tipped the balance into the realms of securities and breached the laws governing such investments.
As has become the norm in such circumstances, the Stoner Cats team neither admitted or denied the allegations. However, in agreement with the SEC, the project has acquiesced to pay a $1 million ‘fine,’ and destroy any NFTs that remain in its possession. In addition, it is also required to set up a fund to reimburse collectors who invested in Stoner Cats tokens.
SEC Commissioners Speak Out in Defense of NFTs
Despite the finality given in the wording of the latest SEC findings, it seems that not everyone in its offices agrees with the ruling. Two prominent and well-respected commissioners from within the organization have openly criticized the attack on Stoner Cats, stating “the fact that money is involved does not transform NFTs into securities.”
Wow! SEC commissioners Peirce and Uyeda just released a statement saying they DISAGREE with the SEC’s actions against Stoner Cats nfts
Comparing nfts to 1970s Star Wars collectables, and stating the need to protect artists’ ability to create without excessive legal constraints🤯 pic.twitter.com/w7xOCI0grv
— OKHotshot (@NFTherder) September 13, 2023
Stoner Cats NFTs Rally following the Latest SEC Ruling
In the immediate aftermath of the latest attack on NFTs from the ruling body, the Stoner Cats NFT collection registered a sharp spike in sales. As a result, the floor price rose from approximately 0.019 ETH ($30) to around 0.084 ETH ($136). However, this new and encouraging figure still falls well short of the original mint price of 0.35 ETH (roughly $800 at the time).
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