Blockchain advocacy group Digital Chamber urged United States-based crypto users to support a bill that designates non-fungible tokens according to their use cases.
On Sept. 10, the advocacy organization called the US Congress to define some NFTs as consumer products, which would exempt the NFTs from federal securities laws. The organization argued that many NFTs function similarly to artwork and traditional collectibles and should be treated as consumer goods rather than securities.
In response to the call, US Representative William Timmons introduced the New Frontiers in Technology Act (NFT Act), which aims to address NFTs’ legal and regulatory treatment.
Digital Chamber urges community to support the NFT Act
According to Digital Chamber, the newly-introduced NFT Act protects “covered NFTs.” The bill classifies covered NFTs as collectibles with the primary purpose of being a work of art, musical composition, literary work or other intellectual property. This includes collectibles, merchandise, virtual land or video game assets.
The protection also extends to affinities, rewards, loyalties, rights, licenses or tickets. However, the Act doesn’t protect NFTs marketed as investment products, with actual or implied actions pointed toward a potential increase in value.
The Act also encourages education, as it directs the US Comptroller General to conduct a study on NFTs after the bill is enacted.
Source: The Digital Chamber
The blockchain advocacy group urged US crypto users to help the industry flourish without “misapplied” securities regulations. Digital Chamber urged Americans to contact their representatives in Congress to voice their support for the bill.
“By supporting this Act, you can ensure continued technological innovation, greater consumer protection, and a true home within the United States for blockchain technology,” Digital Chamber wrote.
Related: NFTs can be securities but SEC Wells notice to OpenSea ‘not productive’ — Lawyer
New bill comes amid the SEC’s crackdown on NFTs
The new development comes amid the SEC’s recent moves against the NFT space. On Aug. 28, the government agency sent a Wells notice to NFT marketplace OpenSea, suggesting that the SEC may take future enforcement actions against the trading platform.
On Sept. 17, the SEC fined the restaurant Flyfish Club $750,000 for selling NFTs. SEC commissioners Hester Peirce and Mark Uyeda criticized the enforcement action, arguing that the NFTs didn’t trigger securities laws. The commissioners said that the NFTs were simply a different way to sell memberships.
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