Digital Chamber Asks Lawmakers to Classify NFTs as Consumer Goods As SEC Tightens Grip
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The Digital Chamber on Tuesday urged lawmakers to pass legislation that defines certain non-fungible tokens (NFTs) as consumer products. This would exempt them from federal securities laws.
The trade association requested that legislation affirm NFTs intended for consumer use are separate from financial products. Additionally, it stated that these should be exempt from SEC oversight. This would ensure they are not classified as securities or other financial instruments.
It comes in response to increased scrutiny from the Securities and Exchange Commission (SEC) into the NFT market.
The @SECGov’s overreach is putting the livelihoods of NFT creators and communities at risk. NFTs are primarily consumer goods—not securities. We need Congress to take action now and protect innovation, creators, and consumer rights. https://t.co/dp1fb2R3cf
The association represents a broad range of stakeholders in the digital economy. It argued that many NFT applications are not meant to be investment vehicles or speculative financial tools. Although some NFTs are resold for profit, the association insists this does not make them financial products.
“These items should be classified as consumer goods, not securities. TDC is advocating for legislative clarity that reflects this distinction,” it said.
Further, the association also criticized SEC Chair Gary Gensler’s enforcement-driven regulatory strategy. It argued that this approach jeopardizes the livelihoods of many who rely on NFTs. The association noted that individuals use NFTs for more than just personal passion projects. They also connect with communities and
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