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The US Securities and Exchange Commission (SEC), led by well-known skeptic Chairman Gary Gensler, has begun work to study the unique NFT tokens in the context of securities and the application of relevant legislation to them. It is reported by Bloomberg.
Anonymous sources claim that the SEC is particularly concerned about whether “certain unique tokens are used […] to raise money like traditional securities.”
Over the past few months, SEC officials have sent letters to token creators and various cryptocurrency platforms on which they trade, asking them to provide more detailed information.
The SEC has a particular interest in how fractional NFTs are being used, which is what happens when a very expensive NFT is tokenized into smaller pieces and sold.
Commissioner for the US Securities and Exchange Commission (SEC) Hester Peirce, by the way, warned cryptors about this back in March last year. She explained to cryptocurrency market participants that unique NFT tokens in some cases can be considered as securities. “You’d better be careful not to create something that is an investment product – that is, a security.” Pierce said.
The SEC commissioner praised the creativity of those who issue NFTs, as they are used in the gaming and music industries, as well as in the arts. The concept of unique tokens will most likely not raise questions from the SEC, as uniqueness makes them unlike securities. It’s quite a different situation when the price of NFTs gets so high that people can only afford to buy a fraction of them, or buy baskets of NFT indices. In these cases, NFT creators may inadvertently distribute investment products in violation of US law.
NFT sales continue to rise, ignoring the current downturn in the cryptocurrency market: the two leading NFT exchanges LooksRare and OpenSea recorded a trading volume of $ 10.7 billion over the past 30 days.
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