Freeport, a nonfungible token (NFT) company, said on March 29 that it had cleared a Regulation A review by the United States Securities and Exchange Commission (SEC) to launch its blockchain platform for crowd-ownership of a four-piece collection of Andy Warhol artworks.
Each piece consists of 10,000 shares, with a minimum purchase of 10 per individual, and a maximum of 1,000 people are permitted to possess a Warhol artwork.
The underlying pieces are reproductions of renowned Warhol works such as “Marilyn (1967),” “Double Mickey (1981),” “Mick Jagger (1975),” and “Rebel Without a Cause (James Dean) (1985). According to MutualArt, current Andy Warhol artworks may sell for anywhere from $6 to $195,040,000 each.
According to Freeport, the SEC’s approval enables regular investors to acquire fractional ownership in the fine arts market, which is generally reserved for high-net-worth individuals because of the high cost of entry.
The Freeport team noted, “Customers may exhibit their artwork in a high-resolution personal gallery, choose frames, and explore other community members’ galleries with rich social interactions such as comments, likes, and more.” CEO and co-founder of Freeport, Colin Johnson, commented:
“As more and more value moves on-chain, fractionalized art is increasingly being sought after by a younger, yet less financially flexible, class of investors.“
To sell securities in the United States, one must register with the Securities and Exchange Commission (SEC) or request an exemption. The Directive A tax exemption permits organizations, primarily startups, to fund $20 million in 12 months through a Tier 1 offering or $75 million through a Tier 2 offering, which is more restrictive.
Gary Gensler, chairman of the SEC, will speak on the regulation of crypto assets before the House Financial Services Committee on April 18.
