Law professor and filmmaker Brian Frye, along with songwriter Jonathon Mann, have sued the U.S. Securities and Exchange Commission (SEC), challenging its regulatory approach toward NFTs.

The plaintiffs seek clarity on whether NFTs fall under the SEC's jurisdiction and what actions might trigger securities laws for NFT creators and sellers. They argue that the SEC's stance threatens artists' livelihoods by potentially classifying NFTs, like Taylor Swift concert tickets, as securities.

The SEC's first lawsuit against NFTs targeted media company Impact Theory, which promoted the Founder’s Keys NFT collection in 2021, raising $30 million. The SEC considered these NFTs as unregistered securities, leading to Impact Theory paying a $6.1 million fine and agreeing to destroy the tokens.

Frye and Mann aim to prevent similar regulatory overreach affecting digital artists.