**SEC Faces Backlash Over Flyfish Club NFT Settlement**

The SEC recently hit Flyfish Club, an NFT-themed restaurant, with a $750,000 settlement for an unregistered crypto asset securities offering. Flyfish sold 1,600 NFTs to US investors, raking in $14.8 million.

However, SEC commissioners Hester Peirce and Mark Uyeda criticized the move, arguing the NFTs were merely a novel way to sell memberships and didn't violate securities laws. They emphasized the need for clearer guidelines to foster NFT innovation.

Flyfish, led by entrepreneur Gary Vaynerchuk, agreed to destroy remaining NFTs and forgo future royalties. This case follows similar SEC actions against other NFT projects.