First NFT Crackdown Signals SEC Revving Up Enforcement Efforts

US securities regulators’ settlement with a Los Angeles media and entertainment company opens a new front in their clampdown on crypto products, while raising questions about how financial watchdogs view other non-fungible tokens.

The Securities and Exchange Commission last week said it settled with Impact Theory LLC over charges the company conducted an unregistered securities offering when it sold almost $30 million worth of NFTs.

The SEC has been aggressive in its efforts to police crypto markets. The action against Impact Theory, the agency’s first over NFTs, widens the SEC’s sweep over products it views as securities. Industry attorneys expect ...