According to BlockBeats, two American artists filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) on August 1, seeking a declaratory judgment from a Louisiana court to confirm that their upcoming NFT project will not violate U.S. securities laws.

The strongly worded complaint was filed within the jurisdiction of the Fifth Circuit Court, known for its anti-regulatory stance. The lawsuit accuses the SEC of overstepping its authority without Congressional approval by using two enforcement actions in 2023 against NFT projects, Impact Theory and Stoner Cats, to assert its jurisdiction over the entire NFT industry.

The lawsuit argues that under SEC Chairman Gensler's leadership, the regulatory body has taken an excessively broad view of its powers in the context of digital assets. It also claims that the SEC has failed to provide clear guidelines to NFT artists on when the issuance and sale of NFTs might be considered securities offerings.

By incorporating NFTs into its regulatory framework through enforcement actions, the SEC has not adequately addressed the far-reaching implications of applying securities laws to artworks.