NYC's Flyfish Club, Backed by Gary Vee, Settles with SEC Over NFT Sales, Agrees to $750,000 Fine

Sep 16, 2024, 08:15 PM

The Flyfish Club, a planned private dining club and restaurant in New York City, has settled with the U.S. Securities and Exchange Commission (SEC) over alleged violations related to its NFT sales. The club, which sold NFTs as the exclusive way to access its yet-to-be-built restaurant and bar, agreed to pay a $750,000 fine. This settlement comes amidst broader criticism of the SEC's inconsistent approach to classifying crypto tokens as securities, with notable figures such as Coinbase and Ripple's chief legal officers voicing their concerns. SEC Commissioners Hester Peirce and Mark Uyeda have also weighed in, emphasizing that the intent of a buyer cannot transform a non-security into a security and highlighting the potential of NFTs to monetize talent and sell access to experiences. The Flyfish Club project is supported by Gary Vee, and it joins other innovative business models like Stoner Cats in facing regulatory scrutiny under SEC Chair Gary Gensler.