Decrypt.co reported that “The U.S. Securities and Exchange Commission, which has taken a tough line toward cryptocurrency projects under Chairman Gary Gensler, is probing NFT creators and marketplaces for regulatory violations, according to a Bloomberg Report that cites anonymous sources familiar with the investigation.” The March 2, 2022 article entitled “SEC Targets NFT Creators, Marketplaces Over ICO-Like Sales” includes the comments:
Per the report, the probe is looking into whether NFTs “are being utilized to raise money like traditional securities.”
The SEC has reportedly sent subpoenas related to the investigation and is particularly interested in information about fractional NFTs, which allow multiple people to hold (and trade) a share of an asset.
Securities are tradable financial instruments, such as company shares, bonds in a government or business, and derivatives based on another asset.
This will be interesting to follow!
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