This work of conceptual art, “The value of NFTs,” consists of having been previously issued one edition of Brian L. Frye’s work “SEC No Action Letter Request 3: Securitized NFTs” and receiving an official response to Frye’s work. His work consists of a request to the SEC in the form of a no-action letter requesting permission to issue unregistered securities in the form of the art itself. The SEC staff can respond to Frye’s work in three ways: doing nothing, issuing a letter denying the requested relief, or issuing a letter granting the requested relief.

The value of NFTs as an asset class is inextricably linked to the SEC’s decision: whether NFTs constituting works of conceptual art can meet the definition of unregistered securities, and thus whether securities enforcement action should be pursued with respect to creators and sellers of NFTs. The value of Frye's work, and other NFTs, on the secondary market approaches zero if the SEC concludes that they are unregistered securities. Editions of this work of conceptual art thus reflect a bet on the future value of NFTs as an asset in which any future expectation of profits is contingent on the efforts of others—namely, regulators.

The work of conceptual art “The Value of NFTs” exists in a limited edition of 50. Ownership of this NFT comprises ownership of one edition of the work, and constitutes ownership of 2% of the work. Ownership of this NFT does not constitute any other claim or right of any kind.