Jeremy Allaire, Co-founder and CEO of Circle expressed:  To be clear, this is a registered security with the SEC under RegCF, which means that the SEC has qualified a Security NFT for a song that pays royalties in USDC. Is this an industry and regulatory first?

Security NFTs — royalty NFTs, for major artists, paid out in USDC. This was a dream a few years ago, now it’s a reality.

The Security Non-Fungible Token (S-NFT) is the first of its kind that combines the power of NFT technology and an innovative investing framework. This new way of investing allows you to receive rights to the royalties through a limited edition NFT representation. There are only 5,000 tokens available and there will never be more produced.

A new single by Lil Pump, featuring Soulja Boy is slated for release in Q4 2021 — and for the first time ever you can share in the financial upside of the track, and support your favorite artists.

When you invest in this music offering through Republic, you are buying special membership units of an LLC that owns 50% of the master and publishing rights to the song “Mona Lisa” by Lil Pump ft. Soulja Boy. The membership interest may be represented by a security non-fungible token (an S-NFT) which is a representation of that ownership and the vehicle in which returns are distributed.

In order to invest on Republic, you must verify your identity. Identity verification is a standard practice as part of Anti-Money Laundering (AML) and Know-Your-Customer (KYC) requirements. AML and KYC refer to due diligence activities that regulated financial institutions like Republic must perform for compliance purposes and fraud checks. Republic uses third party service providers to validate your identity and confirm you are not prevented from investing due to federal prohibitions.

Investors will be required to provide a My Algo wallet address to receive the S-NFT tokens.

Community Response:  This is a game changer for the average person. Crowdfunded entertainment with rewards for supporters.

Isn’t a Reg CF exempt from registration? Thus it is not a ‘Registered Security.’ Very exciting though, and Congratulations! SNFT are definitely the future!!

What are the rates of return?  They won’t tell you that because there might not be much.

It isn’t actually registered (S-1) and it’s not qualified (Reg A). It’s a Reg CF, which required no sign off from the SEC, just a filing.

Also not a first? Think Paperchain has been doing this with Spotify royalties for a while.

Yes, and it’s a beautiful thing for independent artist as well. Thousands to millions of record sells and stream won’t matter. And neither will fake Billboard numbers.

The SEC is a clown show and nothing else.