Two US Congressmen urge to include legal protection for NFTs In a broad account that would create a wiser regulatory framework for digital assets.
Rep. William Timmons (R-SC) told Decrypt On Tuesday he tries to get the new frontiers in Technology of NFT ACT, included in a changed version of the so -called financial innovation and technology for the 21st Century Act (FIT21), that was that passed By the House of Representatives last year, but should not yet receive approval from the Senate.
On Tuesday, chairman of the Senate Bank Committee Tim Scott (R-SC) said He is determined that the structure of the crypto markets and the Stablecoin accounts will be adopted in the Senate within the first 100 days of the presidency of Donald Trump.
For the first time, the proposed law would lay down clear rules for the regulation of digital assets by, among other things, defending the responsibilities of the Commodity Futures Trading Commission and the Securities and Exchange Commission. And since Fit21 was adopted during the last congress, the again approval stamp of the legislators needs.
Entered By Timmons and Rep. Ritchie Torres (D-NY) in December, the NFT law would designate some NFTs as non-security, which include artworks, video game assets and memberships, among other consumer areas described in the in the other consumer areas in the Bill’s text.
“We not only need rules of the road for Stablecoins and digital assets, our NFT Bill is a great opportunity to create more clarity,” Timmons said Decrypt.
Food and drink giants such as McDonald’s And Starbucks have experimented with NFTs as a way to reward consumers, while entertainment brands such as Disney And Design I used the technology for digital collective objects and gaming experiences.
Among SEC chairman Gary Gensler, however, NFTS largely existed in a legal gray area. The former officer, who dismissal Last month he helped various enforcement actions in Leiden against startups that NFTs issue during his term of office.
When the production studio of Mila was Kunis forced To destroy NFTs associated with the animation series “Stoner Cats” in 2023, the requirements of the SEC were particularly Egregious and Torres conquered the regulatory over -range, Torres said Decrypt. The show contained countless A-list stars, including Kunis, Ashton Kutcher, Chris Rock and Jane Fonda.
“There must be a regulatory framework to prevent the type of armament of the government that we saw under former SEC chairman Gary Gender,” Torres said. “Genler’s sec was aggressive in focusing NFTs in particular.”
Sec brought The first enforcement against a company that issues NFTs in 2023 claims that the media company Impact Theory, established in Los Angeles, used it illegally to collect $ 30 million. The agency has also issued a enforcement threat against the NFT marketplace OpenSeathe Company said in 2024, reaching a settlement with the restaurant Flyfish Club About the sale of NFT access passes.
I have to catch them all
As cryptographic unique tokens linked to digital (and sometimes physical) content, NFTs flourished Ethereum in 2021 and 2022.
Projects such as the Bored Aapjachtclub And Cryptopunks Drawn mainstream attention, together with offers at rated auction houses. As luxury goods and symbols of digital status, they sometimes sold them for Millions of Dollars.
But in recent years, the NFT market has cooled down because users are attracted to meme coins. One NFT collection, Pudgy Penguinshas the trend and grown in popularity, but even that project has launched a meme coin, pengu, on Solana. The prospect of token relaxes for NFT holders helped the sale of SAP at the end of 2024.
Within the SEC, the Republican Commissioners found that many enforcement actions against NFT projects under the authority of Gensler were unjustified.
SEC commissioners Mark Uyeda and Hester Peirce were no different row The fact that the SEC “not” brings routine enforcement actions against people who sell watches, paintings or collective objects, together with vague promises to build the brand. “
Focuses on ‘Stoner Cats’, the Commissioners assertions The SEC actually tried to monitor “Star Wars collection objects sold in the 1970s” without limiting principle.
Torres himself clashed with Gensler, who peppered the former figurehead with questions about the regulatory status of consumer -oriented NFTs on Capitol Hill. In one case, Gensler refused to register Tokenized Pokémon -Cards. Another time Genler danced around the hypothetical question or a Digital Yankees -Ticket was a security then a paper that was not.
“If the SEC technology is neutral, as it claims to be, the use of blockchain should not be relevant,” Torres said. “It was clear that Mr Gensler applied the securities legislation in a way that was discriminatory against blockchain technology.”
‘Crucial step’
The construction of the agency for enforcement actions throw away, acting sec chairman Uyeda and new crypto Task Force Lead Peirce indicated that the SEC will assume much more Collaboration approach On the way to crypto companies.
Nevertheless, the NFT Act has some reservations. It excludes NFTs that have been issued as financial instruments and protects NFTs that are mainly sold by an issue or promoter as an investment contract.
The bill would also instruct the American competent general to study whether NFTs can be used in business institutions as explanations of documents, identification or even government registers.
The NFT Act was initially promoted by the Digital Chamber, a crypto interest group. Although NFTS might not be the most at a crypto today, the Chief Policy Officer of the Chamber told Cody Carbone today Decrypt that the legislation is desperately needed.
“The NFT -Act is a crucial step towards the clarity of the regulations for both consumers and makers,” he said. “We hope that this bill will progress quickly and is included in every broader crypto legislation that is considered by this congress.”
The position was reflected by Torres, who said that the legislation would ensure that NFT projects are not unfairly aimed at supervisors in the future.
“We accept laws not only to apply to presentations, but also future administrations,” he said. “There could be a future Gary Gensler who is chairman of the sec.”
Published by Andrew Hayward