I'm Suing The SEC

I've been writing a song a day for 16 years and 211 days. Today, I'm suing the SEC.

A few years ago I didn't even know what the SEC was. I couldn't have told you what a “security” was to save my life.

But for nearly 3 years, I've made a living selling my songs as NFTs. As a result, I've had to become familiar with securities law.

Through a variety of actions, including settlements with Stonercats & Impact Theory, the SEC has made it clear they believe I am breaking the law. I'm up there with Madoff, SBF and Martha Stewart.

My crime?

Every single day I am selling unregistered securities. Every single day I am illegally entering into “investment contracts”, by way of some amorphous, undefined onchain process.

Lest you think I'm being hyperbolic, read the action that the SEC took against Stoner Cats.

The first page of the SEC's action against Stoner Cats.

In making their case against Stoner Cats, the SEC very clearly implicates EVERY SINGLE NFT PROJECT. I'm implicated, you're implicated…

THIS MAKES ME VERY ANGRY. It feels extremely unfair. I don't want to get sued, and I truly don't think I'm doing anything wrong. The vast majority of folks creating & selling NFTs are just trying to make a living, like me.

Have there been bad actors? Sure! But what's galling is that Stoner Cats was not one of them. The core of the Stoner Cats team was a group of regular animators and producers, hustling like the rest of us. They caught a lucky break and scored big with NFTs at the perfect time. AND THEN THEY FOLLOWED THROUGH! They created the show they were aiming for. Had they not been attacked by the SEC, who knows what they could have done?

It's confusing why they were singled out. They did not deserve it. The unfairness of this drives me insane.

A gif from Stoner Cats

So: Because the SEC has been exquisitely random about which projects they go after, it feels like anyone could be next. Are they going to come after me?

Imagining Gary Gensler pointing his finger at me in accusation in a court room

I sold ~4000 of my Song A Day NFTs in 2022 for ~3.4 Million dollars (most of which I lost to taxes, but that's a story for another time). Does this make me a target?

I refuse to sit around and find out. Inspired by the efforts of the fine folks at the Defi Education Fund (@fund_defi), I am proud to bring this pre-enforcement action against the SEC. The plaintiffs in the case are me and @brianlfrye, a brilliant lawyer and artist. Read the entire complaint.

The first page of our lawsuit against the SEC.

In Sep 2023, on the day of the Stoner Cats action, I channeled my rage at the news into a song called “This Song Is A Security”:

Now, I've remixed that song specifically for the purpose of this lawsuit. I've recorded roughly 300 layers that will be programmatically combined into a total of 10,420 individual, unique remixes. This forms the basis of an NFT project I am submitting to the court.

Screenshot of Logic, where I put together all the 300+ layers for the "This Song Is A Security" programmatic remix.

Furthermore, I've teamed up with world renowned 8bit artist @judebuffum. He's created a visual element to go with the remixes, inspired by government agency seals and logos.

(Fun fact: Jude has been doing @basepaint_xyz daily for almost a full year!)

Examples of the visual aspect of the "This Song Is A Security" remix project.

You can also signal your support on Twitter by minting a SADvatar PFP for free. You can design your own or get a random one. Mint as many as you like, for free (just paying gas, on @base) The art is by the incredible @davehomerdraws.