Are NFTs financial securities akin to stocks, or are they purely commodities? It’s an important question, because securities are subject to a lot more regulation, and selling them without proper registration doesn’t end well. The truth? It depends what the NFT is, what benefits it brings the buyer/owner, and how it’s sold.
And regulators are on the case: witness the report this week that the US Securities and Exchange Commission (SEC) is investigating Yuga Labs, the company behind lucrative NFT brand Bored Ape Yacht Club. “The SEC is examining whether certain nonfungible tokens from the Miami-based company are more akin to stocks and should follow the same disclosure rules,” reported Bloomberg, adding that the distribution of Yuga’s ‘ApeCoin’ cryptocurrency is also under the microscope.
The company told Bloomberg it will fully cooperate with any inquiries, although the SEC has not commented publicly on its work – and as the piece notes, Yuga has not been accused of wrongdoing at this stage, and any inquiry will not necessarily lead to charges.
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