- Digital Chamber has asked crypto users in the U.S to support the new NFT bill
- The bill seeks to introduce a clear line between NFTs considered to be securities and those that are not
- Known as the New Frontiers in Technology (NFT) Act, it focuses on addressing the regulation of NFTs
Crypto and blockchain advocacy group Digital Chamber has urged crypto users in the United States to support the new NFT bill in the country’s Congress. Dubbed the New Frontiers in Technology (NFT) Act, the bill seeks to bring regulatory clarity to the NFT sector including introducing a criterion to be used when labelling NFTs as securities. Digital Chamber told the crypto community that the bill addresses the securities watchdog “overreach,” which may force the securities regulator to take a clear stand when regulating the space.
Video Game NFTs Aren’t Securities
According to the advocacy group, the Act classifies certain collectibles as intellectual property, works of art, and literary works. Collectibles in these categories include merchandise and video game assets.
TDC supports the “New Frontiers in Technology (NFT) Act.” This proposal is a crucial step in clarifying the regulatory landscape for NFTs and addressing the @SECGovs’s overreach. We commend @RepTimmons for his leadership in drafting this bill. https://t.co/fRPA8Q4P9K pic.twitter.com/t24QqrYXfp
— The Digital Chamber (@DigitalChamber) September 16, 2024
The bill also seeks to protect NFT-based rewards and loyalties but excludes collectibles whose creators popularize them as an investment. Digital Chamber also wants the United States Comptroller General to kickstart a study into virtual collectibles.
The advocacy group requested crypto investors in the U.S to reach out to their representatives in Congress and urge them to vote for the bill. According to Digital Chamber, the bill will support technological innovation while also making the United States a preferred destination for blockchain-powered projects.
OpenSea the Latest to Receive a Wells Notice
The bill comes when the SEC continues to reach out to several NFT projects accusing them of selling unregistered securities. The latest NFT-focused entity to receive a Wells notice from the regulator is NFT exchange OpenSea.
Gary Vaynerchuk-linked Flyfish Club NFTs project was fined $750,000, something that was criticized by some SEC commissioners.
With the bill yet to be passed, it’s to be seen whether the crypto community will pressure their representatives to support the bill.
