Artists Brian Frye and Jonathan Mann have filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) in Louisiana, seeking clarification on whether non-fungible tokens (NFTs) should be regulated as securities.

The lawsuit aims to determine if artists are required to register their NFT art or disclose potential risks to buyers before selling.

This legal action reflects a growing frustration among crypto creators, prompting many to take a stand against regulatory enforcement before being targeted.

Industry supporters, including Katherine Minarik from Uniswap Labs, have expressed concerns about the SEC's arbitrary application of securities laws and are urging for legal clarity.

The Blockchain Association, representing major crypto firms, supports Frye and Mann, arguing that the SEC lacks authority over NFT art and criticizing the burden placed on artists to navigate complex legalities.

Mann emphasizes the irony of the SEC targeting NFTs, viewing them as a direct connection to fans, unlike platforms like Spotify that take a cut from artists.

The SEC previously charged a YouTube channel for promoting NFTs as investments, a move the plaintiffs argue misapplies securities laws.

Frye and Mann's attorneys argue that the SEC's actions threaten the livelihoods of artists experimenting with new digital technologies and unfairly target digital art sales.

The plaintiffs are seeking declaratory and injunctive relief to prevent what they describe as 'unlawful enforcement actions' from the SEC regarding their NFT projects.

The SEC's actions have created uncertainty for artists, who may feel compelled to hire securities lawyers to sell their art without risking legal repercussions.

The complaint draws a parallel to Taylor Swift's concert tickets, suggesting that if her works were deemed securities, it would have far-reaching consequences for artists.

Ashley Ebersole, a former SEC lawyer, noted that the lawsuit highlights significant concerns regarding the SEC's expansive jurisdiction over crypto and NFTs.