The global phenomenon of 2021 that has been on everybody’s lips, the Non-fungible Tokens will become subject to scrutiny by the U.S. Securities and Exchange Commission, Bloomberg reports.
The SEC is planning to determine whether some of the NFTs could, indeed, pose as securities by raising money, just as traditional securities do. The Commission worries that investors might be bypassing the law and certain fees by proclaiming their securities to be NFTs. Several subpoenas have been sent to investors to come and defend their case.
The Commission also plans to further examine the so-called fractional NFTs that have to do with fractioning an asset into smaller pieces that can be bought as collectibles.
As of this time, the SEC did not provide any further details, as they refused to comment on an ongoing investigation.
The only information that they provided comes from the SEC under Chair Gary Gensler, who has said that the inquiry is aimed at crypto services providers to prove that they adhere to all the necessary regulations.
With the sudden boom of the NFT market, the regulators seemed unprepared for such a global phenomenon, but it seems that they are starting to catch up. While, on the one hand, this means more regulation, on the other hand, further guidance from authorities might prevent unwanted future legal mishaps.