NFTs As Commodities: Proposed Senate Bill Signals Regulatory Guidelines

In the rapidly moving world of digital assets, specifically non-fungible tokens (NFTs), we begin to gain some clarity on their future. Creators and regulators alike have speculated about when and how NFTs will be regulated. A bill proposed in the U.S. Senate provides some insight into how the federal government may seek to regulate NFTs and other digital assets and vehicles.

The Responsible Financial Innovation Act

Guardrails are proposed to be placed around the growing industry of digital assets. The Responsible Financial Innovation Act, spearheaded by Senators Kristen Gillibrand and Cynthia Lummis, proposes that the vast majority of digital assets (including NFTs) be classified as commodities (such as wheat, oil or steel) rather than as securities. Oversight responsibility would be on the shoulders of the Commodity Futures Trading Commission (CFTC), not the Securities and Exchange Commission (SEC).