Two US lawmakers are advocating for legal protections of non-fungible tokens (NFTs) in a proposed digital asset regulatory framework.
NFTs and Regulatory Clarity
The NFT Act, introduced by Timmons and Torres in December, seeks to classify certain NFTs, such as digital art and game assets, as non-securities. The proposed legislation would offer regulatory certainty on NFTs used in consumer applications, excluding those marketed as investment contracts.
Changes in SEC Leadership and Approach
Under former SEC Chair Gary Gensler, NFTs remained in a legal gray area with various enforcement actions. After his resignation, Mark Uyeda and Hester Peirce hinted at a change in SEC strategy. The new crypto task force aims to promote more cooperation with digital asset firms.
Further Prospects and Bill Support
The proposed legislation also mandates a study by the U.S. Comptroller General on the use of NFTs in business. Crypto advocacy group The Digital Chamber has endorsed the bill, emphasizing its importance in ensuring fair treatment for NFT projects.
The NFT deregulation bill proposes crucial changes in the interpretation of digital assets, aiming to prevent regulatory overreach and support industry innovation.
