Digital Chamber Urges US Crypto Users to Support New NFT Bill
Date: 2024-09-18 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
Following the introduction of a new NFT bill by Congressman William Timmons on September 16, Digital Chamber is calling on US crypto users to support the legislation.
The blockchain advocacy group has asked the public to support a bill that would classify non-fungible tokens (NFTs) based on their intended use as regulatory scrutiny continues to mount.
New NFT Bill Gains Momentum in Congress
On September 16, Digital Chamber released a statement thanking Congressman William Timmons for introducing the New Frontier in Technology (NFT) Act and urging the public to support the bill.
The bill seeks to define and regulate NFTs by categorizing them based on their use, a move that many see as important to provide legal clarity amid increasing scrutiny from regulators like the U.S. Securities and Exchange Commission (SEC).
The bill proposes to classify certain NFTs, such as those that function as art, music, literature, or intellectual property, as collectibles, and thus exempt them from federal securities laws.
This would reduce the legal burden on creators and buyers of digital collectibles.
However, the bill makes it clear that NFTs that are sold as investment vehicles will not be protected.
The bill also calls for a study by the U.S. Comptroller General to analyze the impact of NFTs to help better understand their regulation in the blockchain space.
The Digital Chamber emphasized the importance of public support for the NFT bill, urging crypto users to contact their representatives.
The group believes that supporting this bill will help ensure that blockchain technology can thrive under clear and fair regulation.
The SEC’s NFT Crackdown and Its Implications for the Digital Asset Market
The Digital Chamber’s call comes as the SEC has been increasingly focused on the NFT market.
In August, the SEC issued a Wells Notice to NFT marketplace OpenSea, which could signal possible enforcement action.
The SEC also recently fined Flyfish Club $750,000 for unregistered sales of NFTs tied to exclusive restaurant memberships.
Critics say the SEC’s actions under Gary Gensler are too aggressive and could stifle innovation in the digital asset space.
In response to these concerns, Congress has scheduled a hearing titled “In Confusion: Unpacking the SEC’s Politicized Approach to Digital Assets” to consider the broader implications of the SEC’s regulatory stance on the blockchain industry.
