Jonathan Mann and Brian L. Frye File Lawsuit Against SEC Over NFTs
Jonathan Mann and conceptual artist Brian L. Frye have filed a lawsuit against the US Securities and Exchange Commission (SEC) over the classification of NFTs representing digital art as securities under US law. Mann, known for creating daily crypto-related songs, wrote, “This song is a security” in protest.
Tweet from Jonathan Mann:
I’ve been writing a song a day for 16 years and 211 days.
Today, I’m suing the SEC.
(Yes, this is real) pic.twitter.com/QubAgbltr0
— 16 years of song a day (@songadaymann) July 29, 2024
Mann and Frye argue that their digital artworks sold as NFTs should not be classified as securities and are challenging the SEC’s regulatory framework. Mann plans to release 10,420 NFTs featuring unique remixes of his song, while Frye aims to offer 10,320 NFTs under his project.
Mann wrote in a statement:
“Now, I’ve remixed that song specifically for the purpose of this lawsuit. I’ve recorded roughly 300 layers that will be programmatically combined into a total of 10,420 individual, unique remixes. This forms the basis of an NFT project I am submitting to the court[…] The project cannot be released until the court rules in our favor.”
The lawsuit challenges the SEC’s actions against NFT projects and seeks clarification on the classification of digital art as securities. Mann and Frye believe that the current regulatory approach could stifle creativity and innovation in the digital art space.
Mann commented:
“NFTs have become a joke lately. It feels similar to 2017. Hardly anyone thinks there’s anything worth pursuing. But I still believe in NFTs! Beyond the hype of 2021, and beyond the fallow period we’re in now, the core idea that initially got me excited is still there.”
The lawsuit reflects concerns within the digital art community about the SEC’s scrutiny of NFTs and the impact on artists. The outcome could set a precedent for the treatment of NFTs under US securities law.
The artists are concerned that the SEC’s approach could hinder artists’ ability to engage with new technologies and monetize their work.
