According to Bloomberg, attorneys in the SEC's enforcement unit have over the past several months filed subpoenas, asking for information about the issuance of NFTs. The move is the latest attempt by the SEC under Chairman Gary Gensler to ensure the crypto
market is in compliance with the commission's regulation.
In February 2022, the SEC and state regulators issued a record $100 million fine against popular crypto exchange BlockFi, for failing to register products that pay customers high interest rates for lending. their digital tokens.
In this investigation, the SEC is also seeking information on fractional NFTs, which involve breaking down assets into units that can be easily bought and sold, according to people familiar with the matter. However, requests for information from regulators do not always lead to enforcement action.
The NFT market exploded last year, attracting great attention with millions of dollars in sales, with the participation of many celebrities. In addition to acting as a proxy for physical collectibles, NFT advocates often advertise their value as a valid, non-replicable digital certificate.
According to data from Chainalysis, approximately $44 billion worth of cryptocurrencies were sent to smart contracts on the Ethereum blockchain tied to NFT in 2021, a significant increase from $106 million the year before.
As the global market boomed, some NFT markets removed those projects that could get them banned by the regulator, such as those that provide royalties or involve raising capital. for a business.
An important regulatory question is whether digital assets, including NFTs, are securities, and if so are subject to the same rules as traditional stocks.
