NFT Artists Lose Bid to Thwart SEC Scrutiny of Digital Art Sales

A federal judge tossed a case from two artists who sued the Securities and Exchange Commission seeking to shield digital artwork they sold as nonfungible tokens from any potential enforcement action.

The artists didn’t properly identify a final agency action to challenge and fell short on their argument that a registration requirement imposed by the SEC is an unconstitutional constraint on free speech, Judge Greg G. Guidry of the US District Court for the Eastern District of Louisiana ruled Tuesday.

The SEC has applied the Howey test, derived from a 1946 Supreme Court ruling, in at least three suits against ...