The Digital Chamber (TDC) has urged Congress to pass a bill that would categorize specific non-fungible tokens (NFTs) as consumer products and exempt them from federal securities regulations. This move comes in response to mounting worries arising from the Securities and Exchange Commission’s recent actions, including the issuance of a Wells notice to NFT marketplace OpenSea.
In a statement released by TDC, they have contended that NFTs designed for consumptive purposes, such as digital art, collectibles, and in-game assets, should not be viewed as financial instruments. The organization maintains that these tokens should be treated as regular consumer goods, as they are often bought for personal enjoyment rather than investment intentions. The occasional resale for profit, in their eyes, does not alter their status as securities.
TDC has highlighted that NFTs, similar to traditional collectibles or artwork, possess a secondary market feature that does not inherently designate them as financial products. They referenced their own report which revealed that many NFT applications are not intended to be used as investment contracts or speculative financial instruments.
The call from The Digital Chamber arrives amidst a wave of regulatory actions by the SEC aimed at NFT platforms. Lawsuits against companies like DraftKings and Dapper Labs have caused apprehension in the digital asset sector, with concerns growing over potential regulatory overreach. The recent legal actions against OpenSea, a major NFT marketplace, have only added to these worries.
TDC expressed their dissatisfaction with SEC Chair Gary Gensler’s enforcement-oriented regulatory strategy, suggesting that it has threatened the livelihoods of numerous individuals reliant on NFTs for personal hobbies and professional endeavors. Additionally, they cautioned that the absence of clear legislative guidelines may prompt NFT creators and businesses to relocate overseas, where regulations might be more favorable. The organization has therefore urged Congress to confirm that NFTs intended for consumptive use should not be under the jurisdiction of the SEC, cautioning that ongoing ambiguity could detrimentally affect both the industry and the broader U.S. economy.
