The Securities and Exchange Commission (SEC) has begun work on determining whether NFTs qualify as securities and applying the relevant laws. Bloomberg reported, citing informed sources.
In recent months, agency staff have sent requests to token creators and various crypto platforms where their trading is organized, seeking additional information.
The focus is on whether such assets are used to raise money, rather than as traditional securities. The emphasis is on fractional NFTs.
Earlier, SEC commissioner Hester Peirce warned that such tokens and the index baskets composed of them could be construed as investment contracts under U.S. securities laws.
Earlier, Gary Gensler, the head of the Commission, said that regulation is necessary for cryptocurrencies to survive.
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