Digital Chamber Calls on US Crypto Users to Back NFT Bill for Consumer Protectio

The Digital Chamber urges US crypto users to support the NFT Act, a bill aimed at classifying non-fungible tokens as consumer goods rather than securities, exempting many NFTs from federal securities laws. The Act emphasizes protection for NFTs tied to art, music, and collectibles, while excluding investment-based NFTs. The bill comes as the SEC intensifies its scrutiny of the NFT market.

Blockchain advocacy group Digital Chamber has called upon crypto users across the United States to rally behind a newly proposed bill that could significantly reshape the legal and regulatory landscape for non-fungible tokens (NFTs). On September 10, the Chamber urged US Congress to classify NFTs according to their use cases, ensuring that many are treated as consumer products and not subject to federal securities laws.

The group argues that many NFTs function more like traditional artwork or collectibles and should be regulated accordingly. The bill, introduced by US Representative William Timmons, is known as the New Frontiers in Technology Act (NFT Act) and aims to clarify the treatment of NFTs in the US legal system.

Key Aspects of the NFT Act

The NFT Act, according to Digital Chamber, protects “covered NFTs” by classifying them as collectibles. These include artistic works, music compositions, literary pieces, virtual land, and video game assets, among others. The Act extends its protections to rewards, licenses, tickets, and other intellectual property tied to NFTs. However, NFTs marketed as potential investment products—where there is an expectation of profit—are excluded from these protections.

A significant aspect of the bill also involves public education. The legislation directs the US Comptroller General to conduct a study on the evolving role of NFTs in the economy and the legal challenges surrounding them.

Digital Chamber’s Call to Action

The Digital Chamber is pushing for widespread support from the crypto community, emphasizing that the bill is crucial for technological innovation and consumer protection. By contacting their congressional representatives, crypto users can voice their backing for the NFT Act, potentially ensuring a more favorable regulatory environment for NFTs in the US.

“Supporting this Act helps ensure continued innovation, better consumer protection, and a secure place for blockchain technology in the United States,” the Chamber said in its statement.

SEC’s Recent Moves in the NFT Space

This new legislative push comes amid an increasing crackdown on NFTs by the US Securities and Exchange Commission (SEC). On August 28, the SEC sent a Wells notice to OpenSea, a leading NFT marketplace, signaling potential enforcement actions. A few weeks later, on September 17, the SEC fined Flyfish Club $750,000 for selling NFTs, which the agency claimed were in violation of securities laws.

Notably, SEC commissioners Hester Peirce and Mark Uyeda criticized these enforcement actions, arguing that the NFTs sold by Flyfish Club represented memberships rather than securities.

As the NFT market faces growing scrutiny from regulators, the introduction of the NFT Act could provide much-needed clarity and protection for creators and consumers alike.

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