U.S. Lawmakers Push To Include NFTs in Crypto Bill

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• U.S. lawmakers are pushing to include NFTs in a revised crypto bill
• Two congressmen lead the push and aim to protect NFTs within the law
• The lawmakers want to prevent some NFTs from being considered securities

United States lawmakers William Timmons and Ritchie Torres are pushing to include NFTs in a revised crypto bill to legally protect them. The two congressmen have proposed that NFTs representing art, memberships, and game assets be removed from the securities category, adding that such exemptions will bring more clarity to the NFT sector. The lawmakers argued that there should be “rules of the road” for NFTs as is the case with other blockchain-based assets like stablecoins and virtual assets, something that’s likely to spur the growth of the NFT and web3 space in the country.

Meme coin Investment-based NFTs Aren’t Covered

Timmons and Torres are working “to specify the treatment of covered non-fungible tokens under the securities laws and for other purposes.” Covered collectibles include those featuring literary work, music, virtual land, loyalty points, and merchandise. The lawmakers want the Comptroller General to launch a study to analyze various aspects of NFTs.

The study will look at, for example, the purpose, minting, interoperability, benefits, and scalability of NFTs and their marketplaces. It’ll also investigate whether collectibles can “facilitate commerce,” illicit activities or pose “risks to traditional markets.”

The lawmakers, however, clarified that the push doesn’t seek to protect NFTs offering investment opportunities and those that promise “future actions” targeted at increasing their value.

Meme coin SEC Aggressively Targeting NFTs?

Timmons and Torres want their NFT Act incorporated in the revised version of the Financial Innovation and Technology for the 21st Century Act (FIT21) Torres told Decrypt that financial regulators like the SEC, are aggressively targeting NFTs and acting beyond the law.

SEC’s overreach saw it sued to provide NFT regulation clarification. The push comes a few days after the United States Commodity Futures Trading Commission revealed that it’s restructuring to stop regulation by enforcement.

With the U.S. lawmakers pushing to provide NFT regulation clarity, it may support the growth of the country’s NFT sector.