Pioneering Advocacy for Equitable Non-Fungible Token (NFT) Policy
We believe in a future where NFTs reach their full potential, providing efficiency, economic opportunities, creator equality, and increased protections for individual creators, consumers, and brands.
NFTs are unique and often mixed up with other digital tokens, despite having a wide range of uses, leading to confusion and creation of regulatory hurdles.
Clear NFT rules that protect brand integrity and distinguish financial products from consumer products applications of NFTs.
The Policy Issues
Consumer Product vs. Financial Product Regulatory Treatment
The classification of NFTs as financial products by regulatory bodies like the Securities and Exchange Commission poses a significant challenge, particularly for consumer products that are not intended to function as investment vehicles. This misclassification can stifle innovation and limit the accessibility of NFTs for everyday users.
We are actively working to exempt consumer-use NFTs from federal securities laws and educate on emerging practices, like through our work leading the CFTC’s Global Markets Advisory Committee’s NFT Working Group, to inform future regulatory efforts.[PB1] Our goal is to ensure that NFTs, which are meant for personal enjoyment and use rather than financial speculation, are not burdened by unnecessary regulatory oversight.
- Response to SEC Dissent in NFT Enforcement Action | March 2024
- TDC Explainer: What are NFTs? | May 2023
Education Gap: A Widespread Lack of Understanding of NFT Use Cases
The education gap surrounding NFTs is a significant barrier to their broader acceptance and utilization. Policymakers are unaware of the diverse applications of NFTs beyond digital art, such as in gaming, real estate, and identity verification leading to improper regulatory solutions.
We are educating the public, policymakers, and industry stakeholders about the myriad use cases of NFTs through storytelling and awareness campaigns to unlock the full potential of NFTs.
- NFT Report: Education and Emerging Practices | April 2024
- Pixels to Policy: The NFT Impact Report | July 2023
Trademark Protection: Ensuring the Protection of NFT-Related Trademarks
The lack of clear trademark regulations for NFTs presents a significant challenge, as it leaves creators, brands, and owners vulnerable to infringement and fraud in the rapidly evolving metaverse.
We are actively advocating for the establishment of clear and robust trademark laws and intellectual property (IP) rights within the metaverse. Our goal is to ensure that NFTs are adequately protected, fostering a secure and innovative environment where creators can thrive without fear of their work being unlawfully replicated or exploited and consumers are not misled.
Our Impact
Our work is focused on creating a thriving NFT ecosystem that benefits artists, consumers, and the economy.
Policy Exploration and Stakeholder Engagement
In collaboration with congressional and industry stakeholders, we’re leading the policy conversation in the U.S. to exempt certain NFTs from federal securities laws.
Advocating for Artists and Brands
Assembled a team to submit an amicus brief in the Hermés v. Rothschild case to advocate for artists’ and brands’ entry into the metaverse. Leading in defining NFTs as consumer products for regulatory clarity in support of artists and platforms.
Creating Solutions
TDC successfully hosted a pivotal public-private sector roundtable with the U.S. Treasury and NFT industry leaders, addressing illicit finance risks of NFTs. This initiative underscores the Chamber’s commitment to proactive industry involvement in mitigating financial risks and fostering a safer digital asset ecosystem.
Relevant NFT News
