In the United States, the Securities and Exchange Commission regulates securities. But what is a security? Until recently, the answer seemed clear, if rather circular: Securities are the kind of investments traded in securities markets. When in doubt, issuers relied on the Supreme Court's famously expansive Howey test, which held that a security is an investment of money in a common enterprise with the expectation of profit from the efforts of others. It left the SEC plenty of discretion, but there were few real surprises.
Until now. The SEC is keen to regulate crypto assets, including NFTs. It has already brought several enforcement actions, and yet it remains unclear how NFTs satisfy the Howey test. According to the logic of the SEC's enforcement actions, the art market has always been a securities market.
Professor Brian Frye of the University of Kentucky College of Law will discuss the economics of art, authenticity, and securities regulation, including his lawsuit to prevent the SEC from regulating NFTs. Please join us for what should be a fascinating discussion of the nature of art as a form of human expression and an economic investment.
Registration coming soon!
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