TDC Calls for Congress to Exempt NFTs from SEC Regulations

The Digital Chamber (TDC) on Tuesday called for legislation that would help clearly define certain Non-fungible tokens (NFTs) as consumer products, adding that these should not be categorized as securities.

This move appears to have been sparked by the ongoing conflict between the Securities and Exchange Commission and the digital assets industry. Things escalated when the SEC issued a Wells notice to OpenSea, a popular NFT marketplace, and tagged NFTs as unregistered securities.

TDC said NFTs have a consumptive purpose, not financial, so they should not be classified as securities under the SEC, or any equivalent classification.

Consumptive-use NFTs, like digital art, collectibles, or items used in video games and events, should not fall under the regulatory purview of the SEC, even if a secondary market for reselling exists. The group also argued that merely selling a rare comic book for profit doesn’t make it a financial instrument. Similarly, trading a digital collectible should not automatically trigger securities regulations.

TDC Urges Congressional Action to Protect NFT Creators from SEC Overreach

In 2023, TDC laid down a Pixel to Policy report where it showcased a number of the most popular NFT applications. The group criticized the aggressive stance of the SEC and its chairman Gary Gensler, saying that the regulation-by-enforcement approach has put countless individuals’ lives into jeopardy.

TDC said that many creators, artists, and developers have built entire businesses around NFTs. These people “connect with their communities, and sustain themselves by selling and trading digital goods and access rights within this thriving ecosystem.”

TDC also highlighted recent SEC actions against prominent NFT-related companies like DraftKings and Dapper Labs. The group believes that the lack of of clear guidelines has left NFT companies and consumers vulnerable to regulatory overreach.

Hence, the call for congressional intervention. “Congress must act now to ensure that this burgeoning industry remains within the U.S., for the benefit of the U.S. economy, and not move overseas to more favorable regulatory environments,” it concluded.

Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

Post Views: 120