United

Blockchain advocacy group Digital Chamber urged United States-based crypto users to support a bill that designates non-fungible tokens according to their use cases.&nbsp;
On Sept. 10, the advocacy organization called the US Congress to <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/digital-chamber-congressional-action-sec-nft-platforms" rel="noopener noreferrer nofollow" target="null" text="null" title="null">define some NFTs as consumer products</a>, which would exempt the NFTs from federal securities laws. The organization argued that many NFTs function similarly to artwork and traditional collectibles and should be treated as consumer goods rather than securities.
In response to the call, US Representative William Timmons <a data-ct-non-breakable="null" href="https://docs.house.gov/meetings/BA/BA21/20240918/117661/BILLS-118pih-conductastudyonNFTswhichwillincludeananalysisofthesizescoperolenatureanduseofNFTsthesimilaritiesanddifferencesbetween.pdf" rel="noopener noreferrer nofollow" target="null" text="null" title="null">introduced</a> the New Frontiers in Technology Act (NFT Act), which aims to address NFTs’ legal and regulatory treatment.&nbsp;
<h2 id="digital-chamber-urges-community-to-support-the-nft-act">Digital Chamber urges community to support the NFT Act</h2>
According to Digital Chamber, the newly-introduced NFT Act <a data-ct-non-breakable="null" href="https://digitalchamber.org/new-frontiers-in-technology-nft-act/" rel="noopener noreferrer nofollow" target="null" text="null" title="null">protects</a> “covered NFTs.” The bill classifies covered NFTs as collectibles with the primary purpose of being a work of art, musical composition, literary work or other intellectual property. This includes collectibles, merchandise, virtual land or video game assets.&nbsp;
The protection also extends to affinities, rewards, loyalties, rights, licenses or tickets. However, the Act doesn’t protect NFTs marketed as investment products, with actual or implied actions pointed toward a potential increase in value.&nbsp;
The Act also encourages education, as it directs the US Comptroller General to conduct a study on NFTs after the bill is enacted.&nbsp;
<figure><img alt="Digital Chamber urges US crypto users to support new NFT bill" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191ff8c-951a-79dc-9725-ea09acc0b1da">
 <figcaption style="text-align: center;">
 Source: <a data-ct-non-breakable="null" href="https://x.com/DigitalChamber/status/1835771360833847342" rel="noopener noreferrer nofollow" target="null" text="null" title="https://x.com/DigitalChamber/status/1835771360833847342">The Digital Chamber</a>
 </figcaption>
</figure>
The blockchain advocacy group urged US crypto users to help the industry flourish without “misapplied” securities regulations. Digital Chamber urged Americans to contact their representatives in Congress to voice their support for the bill.&nbsp;
“By supporting this Act, you can ensure continued technological innovation, greater consumer protection, and a true home within the United States for blockchain technology,” Digital Chamber wrote.&nbsp;
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/nft-securities-sec-wells-notice-opensea-lawyer-response" rel="noopener noreferrer nofollow" target="null" text="null" title="null">NFTs can be securities but SEC Wells notice to OpenSea ‘not productive’ — Lawyer</a>
<h2 id="new-bill-comes-amid-the-sec-s-crackdown-on-nfts">New bill comes amid the SEC’s crackdown on NFTs</h2>
The new development comes amid the SEC’s recent moves against the NFT space. On Aug. 28, the government agency <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/opensea-wells-notice-sec-nfts" rel="noopener noreferrer nofollow" target="null" text="null" title="null">sent a Wells notice</a> to NFT marketplace OpenSea, suggesting that the SEC may take future enforcement actions against the trading platform.&nbsp;
On Sept. 17, the SEC <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/two-sec-commissioners-slam-agencies-nft-settlement-flyfish-club" rel="noopener noreferrer nofollow" target="null" text="null" title="null">fined the restaurant Flyfish Club</a> $750,000 for selling NFTs. SEC commissioners Hester Peirce and Mark Uyeda criticized the enforcement action, arguing that the NFTs didn’t trigger securities laws. The commissioners said that the NFTs were simply a different way to sell memberships.&nbsp;<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>
 Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/nft-collector-william-mapan-explains-generative-art-using-crayon-dice-nouns-cool-cats/" rel="noopener noreferrer nofollow" target="null" text="null" title="null">NFT Collector: William Mapan’s Distance sells out, NFT float in Macy’s Parade, Nouns DAO forks</a>

Digital Chamber urges US crypto users to support new NFT bill

Table of Contents

Cointelegraph

Other articles published on Sep 17, 2024

Binance Confirms Ownership of Leaked App

Coinpedia Fintech News

Dragonfly Capital eyes $500M for fourth crypto fund

Donald Trump Faces Political Turbulence and Crypto Market Reactions

Invest $250 in These 5 Cryptos for 200x Returns by 2026

President of El Salvador Announces End of External Borrowing for Budget Financing

Join our free newsletter for daily crypto updates!