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Digital Chamber urges lawmakers to define NFTs as consumer goods

GrafaGrafa2024/09/12 07:35
By:Mahathir Bayena

The Digital Chamber, an advocacy group promoting blockchain technology, has urged U.S. lawmakers to classify non-fungible tokens (NFTs) as consumer goods rather than financial products.

The organisation believes that current regulatory scrutiny, particularly from the U.S. Securities and Exchange Commission (SEC), poses a significant risk to the NFT sector and the broader U.S. economy.

The Digital Chamber argues that many NFTs are not designed as investment tools or for financial speculation.

While some consumers may sell NFTs for profit in secondary markets, the group contends this does not make them securities.

“These items should be classified as consumer goods, not securities,” the Digital Chamber stated.

They are advocating for clear legislative guidelines that recognise this distinction to protect innovation, creators, and consumer rights.

The advocacy group also criticised SEC Chair Gary Gensler for what it described as regulatory overreach, claiming that his actions jeopardise the livelihoods of those involved in the NFT industry.

NFT platforms like OpenSea, Dapper Labs, and DraftKings have already felt the impact of the SEC's scrutiny.

The SEC recently issued a Wells Notice to OpenSea, indicating potential violations of federal securities laws.

OpenSea's co-founder and CEO, Devin Finzer, expressed concern, saying, “We’re shocked the SEC would make such a sweeping move against creators and artists. But we’re ready to stand up and fight.”

The Digital Chamber warns that this regulatory approach could push the NFT market out of the United States, similar to what happened during the regulatory crackdown on crypto, where companies moved to countries with more favorable regulations.

The Wells Notice issued to OpenSea has already led to structural changes at other platforms, such as Magic Eden, which has separated its operations for U.S. and global markets.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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