Digital Chamber urges lawmakers to classify NFTs as consumer goods amid SEC enforcement concerns

The Digital Chamber (TDC) has called connected Congress to walk authorities that would specify definite non-fungible tokens (NFTs) arsenic user goods and exempt them from national securities laws.

The determination follows increasing concerns implicit the Securities and Exchange Commission’s (SEC) caller enforcement actions, including the issuance of a Wells announcement to NFT marketplace OpenSea.

Classifying NFTs

In a connection released connected Sept. 10, TDC argued that NFTs created for consumptive use, specified arsenic integer art, collectibles, and video crippled assets, should not beryllium classified arsenic fiscal products.

Instead, the radical contends that these tokens should beryllium treated similar traditional user goods. The Digital Chamber emphasized that NFTs are often purchased for idiosyncratic usage alternatively than concern purposes, and occasional resales for nett bash not alteration them into securities.

According to the statement:

“TDC’s 2023 Pixels to Policy study recovered that galore NFT applications are intelligibly not designed arsenic concern contracts oregon speculative fiscal tools.”

The enactment emphasized that the secondary marketplace diagnostic of NFTs, overmuch similar accepted collectibles oregon artwork, does not inherently marque them fiscal products.

SEC overreach

The Digital Chamber’s telephone comes amid a bid of SEC actions targeting NFT platforms. Recent lawsuits against companies similar DraftKings and Dapper Labs person raised alarm successful the integer plus industry, with fears that regulatory overreach could stifle innovation.

The SEC’s caller enforcement action against OpenSea, 1 of the largest NFT marketplaces, person further fueled concerns. TDC said:

“SEC Chair Gary Gensler’s regulation-by-enforcement attack has jeopardized the livelihoods of countless individuals who trust connected NFTs to prosecute their passions and prolong their businesses.”

The radical warned that the existent deficiency of legislative clarity is pushing NFT creators and companies overseas, wherever regulations whitethorn beryllium much favorable.

TDC urged Congress to clarify that consumptive-use NFTs should not autumn nether SEC authority, informing that continued uncertainty could harm the manufacture and the broader U.S. economy.

The station Digital Chamber urges lawmakers to classify NFTs arsenic user goods amid SEC enforcement concerns appeared archetypal connected CryptoSlate.