According to TechFlow, on September 17, The Block reported that the U.S. Securities and Exchange Commission (SEC) announced that the New York restaurant project Flyfish Club reached a settlement with the SEC and agreed to pay a fine of $750,000. The SEC accused Flyfish Club of conducting an "unregistered crypto asset securities offering" and selling 1,600 NFTs to U.S. investors, raising $14.8 million.

Flyfish Club plans to use funds from NFT sales to build a premium membership restaurant and bar in New York City. The SEC said Flyfish led investors to expect profits through its professional management and told investors that they could profit from reselling NFTs on the secondary market. According to the settlement agreement, Flyfish must destroy all NFTs under its control within 10 days and give up royalties from future NFT sales.

SEC Republican Commissioners Hester Pierce and Mark Ueda disagreed with the decision, arguing that Flyfish's NFTs should be considered "utility tokens" rather than securities. They said: "While members may profit by leasing or selling tokens, NFTs have a specific purpose: you need it to dine at Flyfish Club."