BlockNews
FOLLOW ON X
  • BITCOIN
  • CRYPTO
    • ETHEREUM
    • RIPPLE XRP
    • SOLANA
    • CARDANO
    • BINANCE BNB
    • DOGECOIN
    • TRON
    • SUI
    • CHAINLINK
    • LITECOIN
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • OPINION
No Result
View All Result
BlockNews
  • BITCOIN
  • CRYPTO
    • ETHEREUM
    • RIPPLE XRP
    • SOLANA
    • CARDANO
    • BINANCE BNB
    • DOGECOIN
    • TRON
    • SUI
    • CHAINLINK
    • LITECOIN
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • OPINION
No Result
View All Result
BlockNews
Home MEDIA

Stoner Cats NFT Sales Face SEC Scrutiny Over Unregistered Offerings

BlockNews Team by BlockNews Team
September 15, 2023
in MEDIA, NFT, SOCIAL
Reading Time: 3 mins read
1
SHARES
22
VIEWS
Share on XShare in TelegramShare on Reddit
  • The SEC has moved against Stoner Cats 2 LLC over their NFT sales, calling them unregistered cryptocurrency securities offerings.
  • The SEC expressed concerns about the company profiting from secondary sales, with revenue amounting to over $20 million.
  • A dissenting opinion within the SEC draws comparisons to Star Wars’ past marketing tactics, suggesting inconsistent enforcement.

Federal regulators are turning a scrutinizing eye toward the digital collectible marketplace. The U.S. Securities and Exchange Commission (SEC) has recently put the brakes on Stoner Cats 2 LLC’s activities, the team behind the popular “Stoner Cats” animated series. The SEC alleges the company sold nonfungible tokens (NFTs) without the necessary registration, akin to cryptocurrency securities.

Diving deeper into the regulatory body’s concerns, the spotlight shines on how Stoner Cats 2 LLC advertised its digital collectibles. The company hinted at the NFTs appreciating in value, luring buyers with the allure of possible future sales. Additionally, a resale clause allowed the company to pocket 2.5% from each subsequent sale. The sales data is staggering: over 10,000 NFTs, with a price tag of $800 apiece, made their way into buyers’ digital wallets. With the revenue, the company financed the creation of its animated series. The subsequent sales of these tokens in the secondary market amounted to a value that crossed the $20 million threshold.

However, the verdict from the SEC isn’t without its detractors, even internally. Commissioners Hester Peirce and Mark Uyeda diverge from the official stance, framing the sales as something more benign: fan crowdfunding. This form of raising funds, they argue, is a widespread tactic amongst entertainers. These commissioners are calling for clear rules of the game, pressing the SEC to offer lucid guidelines instead of clamping down on emerging NFT projects.

The duo also casts a glance back in time, highlighting a comparable scenario. They reference the 1970s Star Wars promotional wave when Kenner, a toymaker, hawked certificates that promised future toys, sweetened with a chance to enter the Star Wars fandom. The implication? If the SEC had been wielding its regulatory hammer with an even hand, they might have stepped in during this Star Wars initiative.

The ripple of disapproval extends beyond the SEC’s walls. Well-known crypto commentator, Crypto Tea, took to YouTube to share her two cents. In her view, Stoner Cats leveraged the raised funds appropriately, funneling them into their series production. Recounting her own buying experience, she stated her purchase was driven by enjoyment and a nod of support, devoid of profit expectations.

Rising NFT Scams Alarm Digital Art Buyers

Digital art enthusiasts are treading with caution as NFT scams surge. Recently, multiple deceptive practices have come to light. Among these is the “rug-pull” tactic where, after successful sales, creators pull their art pieces from the market. This abrupt move renders the buyer’s tokens valueless. Another alarming scheme involves “phishing,” where attackers deceitfully obtain private keys or wallet details from unsuspecting victims on sham platforms.

In a deceptive bait strategy, con artists make appealing high bids to grab a seller’s attention, only to retract these bids shortly after. “Pump-and-dump” schemes are also gaining traction. Here, organized groups artificially inflate an NFT’s price through exaggerated promotion. They subsequently flood the market with sales, causing prices to plummet and resulting in significant losses for unsuspecting purchasers. Additionally, the sale of counterfeit NFTs is rampant. These imitations, often exploiting renowned artists’ reputations, are passed off as genuine.

As the NFT landscape evolves, potential buyers are urged to be vigilant and conduct due diligence to safeguard their investments.

Disclaimer: BlockNews provides independent reporting on crypto, blockchain, and digital finance. All content is for informational purposes only and does not constitute financial advice. Readers should do their own research before making investment decisions. Some articles may use AI tools to assist in drafting, but every piece is reviewed and edited by our editorial team of experienced crypto writers and analysts before publication.
Tags: secStoner Cats
TweetShareShare
BlockNews Team

BlockNews Team

DON'T MISS THESE! HOT OFF THE PRESS

ApeCoin Makes Official Debut on Solana: Here is Why This is Bullish for APE Holders
CRYPTO

ApeCoin Makes Official Debut on Solana: Here is Why This is Bullish for APE Holders

September 9, 2025
Everything You Need to Know About the Senate Banking Committee’s New Crypto Market Structure Bill
BUSINESS

Everything You Need to Know About the Senate Banking Committee’s New Crypto Market Structure Bill

September 5, 2025
Pudgy Penguins’ Mobile Game Launch Sparks Bullish Predictions for PENGU Token
CRYPTO

Pudgy Penguins’ Mobile Game Launch Sparks Bullish Predictions for PENGU Token

September 1, 2025
What is ZORA, and Why is it Pumping Right Now? Is Base Token Creation Taking Over?
CRYPTO

What is ZORA, and Why is it Pumping Right Now? Is Base Token Creation Taking Over?

August 11, 2025
Handle’s H.A.L. NFT Collection Redefines Virtual Identity on Cardano
CARDANO

Handle’s H.A.L. NFT Collection Redefines Virtual Identity on Cardano

August 4, 2025
Pudgy Penguins Swat Down OpenSea Rumors as NFT Market Picks Up Steam: Here are the Bullish Facts
CRYPTO

Pudgy Penguins Swat Down OpenSea Rumors as NFT Market Picks Up Steam: Here are the Bullish Facts

July 28, 2025
Load More

Related News

BlackRock Pushes Into Tokenization: Here Is How Real-World Assets Are Moving On-Chain

BlackRock Pushes Into Tokenization: Here Is How Real-World Assets Are Moving On-Chain

September 11, 2025
Hong Kong Proposes Softer Capital Rules for Banks Holding Crypto: Here Is What It Means

Hong Kong Proposes Softer Capital Rules for Banks Holding Crypto: Here Is What It Means

September 11, 2025
Bitcoin Breaks $114K: Here Is Why Traders Are Watching U.S. CPI and Rate-Cut Odds

Cardano Price Forecast: Here Is Why ADA Is Targeting $1 Amid Whale Buying and Rising Open Interest

September 11, 2025
Forward Industries Closes $1.65B Deal for Solana Treasury: Here Is Why Shares Surged

Forward Industries Closes $1.65B Deal for Solana Treasury: Here Is Why Shares Surged

September 11, 2025
Charlie Kirk Shooting: Here Is Why FBI Is Offering $100,000 Reward as Manhunt Expands

Charlie Kirk Shooting: Here Is Why FBI Is Offering $100,000 Reward as Manhunt Expands

September 11, 2025
Twitter Telegram Threads

BLOCKNEWS.COM

BlockNews is your premier source for real-time cryptocurrency, blockchain, political and financial market news.

Stay ahead of the herd with BlockNews

RESOURCES

  • About Us
  • Contact Us
  • Editorial Policies
  • Terms and Conditions
  • Privacy Policy
  • Sitemap

DISCLOSURES AND POLICIES

BlockNews provides independent reporting on crypto, blockchain, and digital finance. Content is for informational purposes only and does not constitute financial advice. Sponsored material is always disclosed. By using this site, you agree to our Terms and Conditions and Privacy Policy.

© 2025 BlockNews

No Result
View All Result
  • HOME
  • BITCOIN
  • CRYPTO
    • ETHEREUM
    • RIPPLE XRP
    • SOLANA
    • CARDANO
    • BINANCE BNB
    • DOGECOIN
    • TRON
    • LITECOIN
    • CHAINLINK
    • SUI
  • MEMECOINS
  • POLITICS
  • FINANCE
  • NFT
  • DEFI
  • GUIDES

© 2025 BlockNews