SEC Fines Flyfish Club $750K for NFT Violations

The SEC has fined Flyfish Club $750,000 for selling NFTs without proper registration. The New York-based company, which raised $14.8 million from 1,600 NFTs, is ordered to cease violations and destroy its NFTs. Commissioners Peirce and Uyeda dissent, arguing these NFTs were utility tokens, not securities. They call for clearer guidelines for NFT creators. The SEC’s move is part of a broader crackdown affecting platforms like OpenSea and Coinbase, stirring debate on the agency’s aggressive stance on digital assets.