Songadaymann sues SEC after using NFTs to sell songs he writes every day

Jonathan Mann, known for creating a song daily for over sixteen years, and conceptual artist Brian L. Frye have filed a lawsuit against the US Securities and Exchange Commission (SEC). The case centers on whether NFTs representing digital art, such as those created by Mann and Frye, should be classified as securities under US law. Mann, who has written some of the most iconic crypto-related songs in the industry, wrote, “This song is a security” in protest.

I’ve been writing a song a day for 16 years and 211 days.

Today, I’m suing the SEC.

(Yes, this is real) pic.twitter.com/QubAgbltr0

— 16 years of song a day (@songadaymann) July 29, 2024

Mann and Frye argue that their digital artworks, sold as NFTs, should not be subject to the extensive regulatory framework designed for traditional securities. Mann plans to release a collection of 10,420 NFTs featuring unique remixes of his song “This Song Is A Security.” In comparison, Frye intends to offer 10,320 NFTs under his project “Cryptographic Tokens of Material Financial Benefit.”

Mann wrote in a statement,

“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[…] The project cannot be released until the court rules in our favor.”

The plaintiffs contend that the SEC’s recent actions against other NFT projects, including the Stoner Cats and Impact Theory cases, unjustly extend securities regulations to digital art. They highlight that the SEC’s broad interpretation of the Howey test—used to determine what constitutes an investment contract—threatens to encompass all forms of art and collectibles, not just NFTs. Mann and Frye seek judicial clarification to ensure their art projects can proceed without being classified as securities, thereby avoiding potentially costly regulatory…