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The Digital Chamber urges Congress to classify NFTs as consumer products, not securities.
SEC scrutiny of NFTs raises concerns, pushing for clearer U.S. regulatory guidance.
Legislative protection for NFTs could prevent the sector from moving overseas, impacting the U.S. economy.
The Digital Chamber of Commerce has urged the U.S. Congress to introduce legislation that would clarify the status of non-fungible tokens (NFTs) in the wake of increasing scrutiny from the Securities and Exchange Commission (SEC).
The organization advocates for NFTs to be classified as consumer products, a move that would exempt them from being treated as securities under federal law.
The Digital Chamber’s recent appeal emphasizes the need for Congress to act swiftly to ensure that NFTs are recognized as consumer goods rather than financial products. This classification would place NFTs beyond the regulatory reach of the SEC, which has been increasingly assertive in its approach to the broader cryptocurrency market.
The @SECGov’s overreach is putting the livelihoods of NFT creators and communities at risk. NFTs are primarily consumer goods—not securities. We need Congress to take action now and protect innovation, creators, and consumer rights. https://t.co/dp1fb2R3cf
— The Digital Chamber (@DigitalChamber) September 10, 2024
The Chamber argues that without such legislative protection, the growing NFT sector could be driven overseas, potentially harming the U.S. economy.
The SEC’s ongoing actions against various crypto firms have raised concerns within the digital asset community. Recently, the regulator issued a Wells Notice to the NFT marketplace OpenSea, signaling potential enforcement action.
This move has been met with criticism from crypto advocates, who warn that it could stifle innovation in the emerging NFT space. The Chamber’s statement reflects broader apprehension about the SEC’s approach, which many in the industry view as overreaching.
The Digital Chamber’s call comes at a critical time, as the crypto community waits for clearer regulatory guidance from U.S. authorities. The absence of specific rules has led to an environment where enforcement actions, rather than legislative clarity, dominate.
This has not only sparked legal battles but has also contributed to the migration of crypto talent and businesses to jurisdictions with more favorable regulatory frameworks.
With the advancement of the next election cycle in the United States, the problem of regulating cryptocurrencies seems to be on an upward trend in terms of policy agenda. There are several crypto-related bills introduced in Congress which shows that the sector is increasingly gaining attention as a national issue.
The emergence of the Digital Chamber and its call for legal framework to support NFTs underlines the questions about the source of growth when moving upmarket.
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