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US SEC Executives Stands Divided Over NFT Regulations

source-logo  coingape.com 17 October 2022 15:39, UTC

The U.S. Securities and Exchange Commission (SEC) has been actively probing major Digital assets exchanges and services providers in order to send a message to the market. However, several reports have come out suggesting that the commission executives are standing divided over certain regulations.

SEC’s new outlook for NFTs?

Financial Times reported that SEC commissioner Hester Peirce has alleged that the US watchdogs have kept the NFT creators and investors unaware of laws. They don’t have clarity about which NFT could qualify as securities.

SEC commissioner suggested that some of the non-fungible tokens could be regulated like stock or bonds ahead. While she asked the commission to push more information around the market regulations.

Coingape reported that the commission launched a probe over the Bored Ape Yacht Club (BAYC) parent company Yuga Labs. The commission is checking whether the NFT creators have violated the law by selling their Bored Ape collectibles.

However, Hester Peirce mentioned that digital collectibles that offer investors the right to revenue streams can come under Securities laws. She added that tokens that are split and sold off in the market can also land into this category.

Heat among commission executives?

SEC executives have often formed different conclusions over crypto regulations. Earlier, Coingape reported that the SEC chair Gary Gensler might have violated protocols in the Kardashian settlement case. The SEC enforcement staff accused Gensler of breaching the conduct in the case. He particularly hyped the case to enjoy the spotlight.

On one hand, where the SEC commissioner is asking for new and improved regulation for the market, the SEC chair has maintained its stance of resisting making new rules. He even argued that these existing laws are adequate for the market.

However, the SEC chair has decided to take the tough enforcement route over the digital asset market. He also called it the wild west depicting that all the platforms should register with the regulators.