Regulation
US SEC Fines Flyfish Club $750K for NFT Sales Violations

The U.S. Securities and Exchange Commission (SEC) has issued an order against Flyfish Club, LLC, for the unregistered sale of non-fungible tokens (NFTs). The decision has drawn criticism from within the agency itself, highlighting a growing divide over how NFTs and other digital assets should be regulated under U.S. securities laws.
SEC Takes Action Against Flyfish Club Over NFT Sales
The SEC has charged Flyfish Club, a New York-based company, for raising approximately $14.8 million through the sale of around 1,600 NFTs between August 2021 and May 2022. These NFTs were marketed as memberships that would grant holders exclusive access to a planned high-end dining club.
The regulatory agency’s enforcement action asserts that Flyfish’s NFTs qualify as securities under federal law due to their potential for resale at higher values and the possibility of earning passive income through leasing.
Some thoughts on NFTs being on the enforcement menu at the SEC: https://t.co/jw2trhSIo3 Order is here: https://t.co/R5gQUblatD
— Hester Peirce (@HesterPeirce) September 16, 2024
Based on these findings, the regulatory agency’s determined that Flyfish violated Sections 5(a) and 5(c) of the Securities Act of 1933 by failing to register these NFTs as securities. The order mandates that Flyfish cease and desist from future violations, pay $750,000 in civil penalties, and destroy all NFTs in its possession within ten days.
Dissenting Commissioners Criticize the Decision
However, not all within the US SEC agree with the crackdown. Commissioners Hester Peirce and Mark T. Uyeda issued a joint statement dissenting from the agency’s action, arguing that the NFTs in question were utility tokens rather than securities. According to Peirce and Uyeda, the Flyfish NFTs were designed to provide access to exclusive dining experiences, not as speculative investment vehicles. They contended that the regulatory agency’s reliance on the Howey Test—an assessment used to determine what qualifies as a security—was overly broad in this case.
Hester Peirce and Mark T. Uyeda further argued that the non-fungible tokens offered tangible benefits and that the potential for resale profit should not automatically bring them under the purview of securities law. They raised concerns that the Securities and Exchange Commission intervention might negatively impact NFT holders by complicating the transfer and sale of their memberships.
The commissioners also suggested that the regulatory agency should provide clearer guidelines to allow creators and businesses to innovate with non-fungible tokens without fear of regulatory action. They emphasized that NFTs are a new tool for creators, such as chefs and artists, to monetize their talents and create unique experiences, which should not be stifled by overly rigid regulatory interpretations.
Increasing Scrutiny on NFT and Crypto Platforms
The US SEC’s action against Flyfish Club is part of a broader crackdown on non-fungible tokens and other digital asset platforms. Recently, OpenSea, an NFT marketplace, received a Wells Notice from the regulatory agency, indicating potential legal action over allegations that the digital collectibles traded on its platform could be considered securities.
This follows similar regulatory scrutiny faced by other crypto platforms, such as Coinbase, Kraken, and Uniswap.
Subsequently, these actions have sparked criticism from various stakeholders, including lawmakers and industry experts, who argue that the regulatory agency’s approach under Chair Gary Gensler is overly aggressive. An upcoming congressional hearing titled “Dazed and Confused: Breaking Down the SEC’s Politicized Approach to Digital Assets” will feature testimony from former regulatory agency’s officials and industry leaders, providing further insights into the regulatory agency’s regulatory direction and its potential impact on the future of digital assets.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Regulation
USDC Issuer Circle Set To File IPO In April, Here’s All

USDC issuer Circle is reportedly set to file its initial public offering (IPO) in April as part of the firm’s plans to finally go public. The stablecoin issuer is allegedly already working with top financial institutions to achieve this move.
Circle To File IPO In Late April
According to a Fortune report, Circle is looking to file its IPO in late April, although the listing period remains uncertain. The report noted that when a company files to go public, its shares usually begin trading four weeks later, indicating that the listing could occur in May. However, there is also a scenario where the IPO process could drag on for months.
The stablecoin issuer is reportedly working with investment banks JPMorgan Chase and Citi to achieve its long-anticipated IPO. The firm had previously tried to go public in 2021 under a SPAC arrangement with a shell company.
The US SEC failed to sign off on this arrangement back then, and the company eventually scrapped these IPO plans by the end of 2022 when the crypto exchange FTX collapsed and the broader crypto market experienced a downturn.
Revelation about Circle’s IPO plans comes just days after the stablecoin issuer partnered with NYSE’s parent company to explore USDC’s use in traditional finance (TradFi). Meanwhile, the USDC stablecoin recently launched in Japan following approval from the country’s regulator. Notably, USDC is the first and only global dollar stablecoin approved under Japan’s stablecoin framework.
An Easier Path Now For The Stablecoin Issuer
Circle will likely face less resistance for its IPO plans under the current SEC administration. Under acting Chair Mark Uyeda, the Commission has shown its willingness to work hand in hand with crypto firms, which was missing under Gary Gensler’s administration.
US SEC Chair nominee Paul Atkins has also shown his willingness to change the approach that Gensler’s administration adopted towards crypto firms. During his nomination hearing, the SEC Chair nominee promised to prioritize providing regulatory clarity for the industry.
Circle’s IPO listing would be the biggest since the top crypto exchange Coinbase went public in 2021. Interestingly, Coinbase owns an equity stake in the crypto firm.
The firm’s USDC is currently the second-largest stablecoin by market cap, only behind Tether’s USDT. The stablecoin industry is heating up as more financial institutions look to develop their own stablecoin.
Donald Trump’s World Liberty Financial recently revealed plans to launch its USD1 stablecoin, while asset manager Fidelity is also considering doing so.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Regulation
Japan Set To Classify Cryptocurrencies As Financial Products, Here’s All

Cryptocurrency investors in Japan are bracing for impact following a plan to reclassify digital assets as financial products. While the plan has elicited excitement from cryptocurrency enthusiasts in the Far East, the ambitious plan will have to scale several legislative hurdles.
Japan Targets Reclassification Of Cryptocurrencies As Financial Products
According to a report by Nikkei, Japan’s Financial Services Agency (FSA) is inching toward classifying cryptocurrencies as financial products. Per the report, the FSA intends to achieve the reclassification via an amendment to the Financial Instruments and Exchange Act.
Currently, digital assets in Japan are considered crypto assets conferred with property rights and seen as payment means. Under the FSA’s plans, cryptocurrencies in Japan will be treated as financial products in the same manner as traditional financial products.
The FSA says it will adopt a slow and steady approach toward the reclassification, carrying out “a private expert study group” to test the waters. If everything goes according to plan, the FSA will submit the amended bill to Parliament in early 2026.
The classification of cryptocurrencies as financial products will have far-reaching consequences for the local ecosystem. Experts say treating cryptocurrencies as financial products will bring Japan closer to a crypto ETF launch amid a changing regulatory landscape.
Furthermore, the move may lower current cryptocurrency taxation for local investors since existing capital market rules will apply to the asset class.
A Fresh Bill For Crypto Insider Trading Is Underway
Apart from the reclassification, the FSA disclosed plans for new legislation against insider trading. The move flows treating cryptocurrencies as financial products and will strengthen existing investor protection rules.
“It is a direction to establish a new insider trading regulation that prohibits trading based on unpublished internal information,” said the FSA. “We will develop laws to prevent unfair transactions.”
However, Japan’s cryptocurrency scene is heating up to a boil, driven by local and international players. Last week, stablecoin issuer Circle secured approval from the FSA for USDC with top exchanges set to list the stablecoin.
Japan’s Metaplanet has tapped Eric Trump to join its Strategic Board of Advisors as it continues to load up Bitcoin.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Regulation
Kentucky Governor Signs Off On ‘Bitcoin Rights’ Bill, Strengthening Crypto Protections


In what is being dubbed a major development in the crypto regulation space, the Governor of the US state of Kentucky, Andy Beshear, has signed the ‘Bitcoin Rights’ bill into law. The law promises to safeguard protections for Bitcoin (BTC) users.
Bitcoin Rights Bill Comes Into Effect
Crypto regulations continue to evolve under pro-crypto US President Donald Trump’s administration. In the latest development, Kentucky has become the newest state to enshrine protections for digital asset users.
In an X post published on March 24, crypto advocacy group Satoshi Action Fund announced that Governor Beshear had signed the much-anticipated Bitcoin Rights bill into law. The post stated:
The right to self-custody, run a node, and use of digital assets is now protected for millions of Americans without fear of discrimination.
The bill was first introduced to the Kentucky House by Rep. Adam Bowling on February 19. According to the bill’s description, it seeks to safeguard users’ rights to use digital assets and self-custody wallets. Additionally, it aims to prohibit local zoning changes that discriminate against crypto mining operations.
The legislation outlines guidelines for running a digital asset node and excludes digital asset mining from money transmitter license requirements. It also clarifies that crypto mining or staking is not considered an offer or sale of securities.
On February 28, the bill passed Kentucky’s House of Representatives with a unanimous vote of all 91 representatives in favor. It later passed the Kentucky Senate on March 13, receiving backing from all 37 senators.
Kentucky’s proactive stance toward cryptocurrencies isn’t new. Earlier this year, the state became the 16th US state to introduce legislation seeking to create a Bitcoin strategic reserve.
Meanwhile, neighboring state Arizona is also joining the crypto movement. A recent X post by Bitcoin Laws revealed that Arizona’s House Rules Committee has passed two Bitcoin reserve bills — SB1373 and SB1025. These bills will now head to a full floor vote.
Renewed Optimism Under Trump Administration
Following Trump’s victory in the November presidential election, cryptocurrency regulations in the US are evolving rapidly, with many states introducing legislation aimed at strengthening their digital asset ecosystems and attracting crypto businesses.
Positive changes in crypto regulations are encouraging industry businesses to expand. For instance, leading crypto trading platform Coinbase recently announced plans to hire 1,000 employees in the US.
The Trump administration has also witnessed several lawsuits being dropped against major crypto entities, including Kraken, Coinbase, Gemini, and others. At press time, Bitcoin trades at $87,399, down 0.2% in the past 24 hours.

Featured Image from Unsplash.com, chart from TradingView.com

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