The SEC May Soon Consider the Regulation of Non-fungible Tokens

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The US Securities and Exchange Commission (SEC) has started work to determine the eligibility of NFTs as securities as well as the application of relevant legislation to them, Bloomberg reports citing sources.

The agency staff have sent during the past months requests to token creators and multiple crypto platforms on which they trade, asking them to provide additional information on the matter.

The SEC aims to determine whether such assets are used to raise money.

The SEC Commissioner Hester Peirce warned last year this type of tokens and index baskets consisting of them may be interpreted as investment contracts under US securities laws.

The head of the Commission Gary Gensler had earlier said cryptocurrencies need to be regulated if they want to survive.