Republican

Donald Trump

United

The crypto and blockchain advocacy organization Digital Chamber is calling on the United States Congress to enact legislation “to clearly define certain NFTs [non-fungible tokens] as consumer products and exempt them from federal securities laws” in response to potential enforcement actions against the OpenSea platform.
In a Sept. 10 notice, Digital Chamber described the US Securities and Exchange Commission (SEC) <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/opensea-wells-notice-sec-nfts" rel="null" target="null" text="null" title="null">Wells notice against OpenSea</a> as an “overreach into the digital asset industry.” Though the regulator had not filed a lawsuit against the NFT platform at the time of publication, a Wells notice suggested that the SEC was considering an enforcement action.
<figure>
 <img alt="Digital Chamber calls for Congress to address SEC actions against NFTs" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191ddcd-65a5-7c24-be9d-d4153fc1eccd">
 <figcaption style="text-align: center;">
 Source: <a data-ct-non-breakable="null" href="https://x.com/DigitalChamber/status/1833572264526418146" rel="null" target="null" text="null" title="https://x.com/DigitalChamber/status/1833572264526418146">Digital Chamber</a>
 </figcaption>
</figure>
Digital Chamber asked policymakers to define in US law that NFTs were not “financial products” nor classified as securities under the SEC’s authority. According to the group, the commission and its Chair, Gary Gensler, were taking a regulation-by-enforcement approach to NFTs, which, coupled with a lack of clarity from Congress, “put[s] the industry at risk.”
“Many NFT applications are clearly not designed as investment contracts or financial tools for speculation, even if consumers occasionally sell NFTs for a profit, much like traditional collectibles or artwork,” said Digital Chamber. “These items should be classified as consumer goods, not securities.”<iframe width="100%" height="315" src="https://www.youtube.com/embed/HpNl-1zRqxk" frameborder="0" allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/immutable-closes-nft-marketplace-ecosystem-focus" rel="null" target="null" text="null" title="null">Immutable to shut down NFT marketplace</a>
According to CEO Devin Finzer, the OpenSea Wells notice received on Aug. 28 was “a move into uncharted territory.“ However, investors and artists have previously <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/dapper-labs-settlement-nba-top-shot-nfts-not-securities" rel="null" target="null" text="null" title="null">brought enforcement cases</a> against Dapper Labs over its NBA NFTs and DraftKings over allegations that their NFTs were unregistered securities.&nbsp;
In 2023, the SEC charged entertainment firm Impact Theory with conducting unregistered securities sales through its Founder’s Keys NFTs. The commission later ordered the company to pay more than $6 million.
<h2 id="sec-changing-in-2025">SEC changing in 2025?</h2>
Depending on the outcome of the US election, the leadership and regulatory approach taken by the SEC could change starting in January 2025. Republican candidate Donald Trump has vowed to fire Gensler “on day one” if reelected, while some industry leaders have suggested that Democratic nominee Kamala Harris <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/coinbase-chief-legal-officer-kamala-harris-campaign-encouraging" rel="null" target="null" text="null" title="null">could take a different regulatory approach</a> than the Biden administration.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/lot-going-on-with-nfts-rd-24-hours-of-art-nft-creator/" rel="null" target="null" text="null" title="null">‘No matter how bad it gets, there’s a lot going on with NFTs’: 24 Hours of Art, NFT Creator</a>

Digital Chamber calls for Congress to address SEC actions against NFTs

Table of Contents

Cointelegraph

Other articles published on Sep 10, 2024

SafeWallet announces updated application for secure crypto management

Orbitt Supercharges Meme Coins: Massive Gains on Solana Coming Soon!

Expert Predicts Bitcoin’s Long-Term Value Surge Amid Rising US Debt

5 Best Cheap Crypto to Buy Now Under 1 Dollar September 9 – Ondo, The Graph, Pyth Network, Cronos

Bitcoin Miners Reduce Holdings Amid BTC Price Concerns

Is It Too Late To Buy AIC? AI Companions Price Skyrockets 115% And This Might Be The Next Crypto ...

Join our free newsletter for daily crypto updates!