Crypto Bill Advances with NFT Protections

U.S. Congressmen Advocate for NFT Protections in Revised Crypto Bill

• Rep. William Timmons (R-SC) and Rep. Ritchie Torres (D-NY) are promoting the NFT Act, aiming to classify certain NFTs as non-securities.
• The NFT Act seeks inclusion in the revised Financial Innovation and Technology for the 21st Century Act (FIT21), which passed the House but not the Senate.
• The proposed legislation aims to clarify regulatory roles between the Commodity Futures Trading Commission and the Securities and Exchange Commission.
• The NFT Act excludes NFTs issued as financial instruments or marketed primarily as investment contracts.
• Former SEC Chair Gary Gensler faced criticism for aggressive enforcement actions against NFT projects, including a $30 million case against Impact Theory.

The NFT Act, backed by Reps. Timmons and Torres, seeks to establish clear regulations for NFTs by distinguishing them from securities, while excluding those marketed as investments, amid past SEC enforcement controversies under Gary Gensler’s leadership.