The Digital Chamber TDC, an advocacy group in the United States focused on blockchain, has asked Congress to pass laws classifying certain non-fungible (NFT) tokens as consumer goods and not securities.
After the U.S. Securities and Exchange Commission released an Wells notice to OpenSeaOne of the largest NFT markets. The notice suggests that NFTs traded on the platform might be considered securities — a classification that would bring them under SEC regulation.
TDC argues There are multiple uses of NFTs. These include digital art, video games and collectibles. This group says that NFTs are used for a variety of purposes, including digital art, collectibles and video games. “clearly not designed as investment contracts or financial tools for speculation.” It believes that these NFTs are not regulated. financial As consumer goods, they are no longer considered instruments.
TDC criticised SEC Chair Gary Gensler “regulation-by-enforcement” They claim that it negatively impacts people whose livelihoods depend on NFTs. The group said that using this approach threatens people who use NFTs as a means to engage their communities and earn a living through selling digital goods.
The uncertainty over the regulation of NFTs is affecting several businesses, including DraftKings The following are some examples of how to get started: Dapper Labs. Due to the unclear laws and SEC actions, these firms suffered setbacks. This has caused businesses and consumers alike to be cautious when engaging in the NFT industry.
TDC urged Congress in its statement to act and ensure that the NFT Industry is protected. “remains within the US, for the benefit of the US economy,” Instead, they could move overseas to countries where regulations are more favorable. The group asks for clarification, in particular when it comes “Consumptive-Use NFTs.”
It isn’t the first time this issue has come up. This issue has been raised before. two artists sued the SECBefore NFTs can be sold, they should know if NFTs fall under the definition of securities. They also need to understand what obligations are applicable, like registration or risk disclosure.
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Source: blog.cryptoflies.com