Digital Chamber Asks Lawmakers to Classify NFTs as Consumer Goods Amid SEC Scrutiny

Source Beincrypto

American advocacy group Digital Chamber, which is committed to promoting the emerging industry behind blockchain technology, has asked lawmakers to classify non-fungible tokens (NFTs) as consumer goods.

NFTs have come under regulatory scrutiny, prompting structural adjustments for key players in the sector.

Digital Chamber Slams SEC for Attacking NFTs

The Digital Chamber (TDC) criticized the US Securities and Exchange Commission (SEC) for its regulatory overreach regarding NFTs. The advocacy group is calling for NFTs to be classified as “consumer goods” and is urging policymakers to take action to protect innovation, creators, and consumer rights.

“Many NFT applications are clearly not designed as investment contracts or financial tools for speculation, even if consumers occasionally sell NFTs for a profit. This secondary market feature 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,” Digital Chamber wrote.

The advocacy group reached this conclusion after conducting an in-depth study of the NFT ecosystem. TDC claims that SEC chair Gary Gensler is jeopardizing the livelihoods of individuals in the NFT market. This frustration extends to NFT-related firms such as DraftKings, Dapper Labs, and OpenSea, which have faced scrutiny from the SEC.

Read more: OpenSea Review: Everything You Need To Know

BeInCrypto reported that the SEC recently issued a Wells Notice to OpenSea, the leading NFT marketplace. This notice suggests that the regulator believes OpenSea may have violated federal securities laws.

“We’re shocked the SEC would make such a sweeping move against creators and artists. But we’re ready to stand up and fight…Every creator, big or small, should be able to innovate without fear,” co-founder and CEO of OpenSea, Devin Finzer expressed.

Regulator Could Force NFT Market Out of the US

According to The Digital Chamber, the SEC’s regulatory overreach could push the NFT sector out of the US. A similar situation occurred during the crackdown on crypto, which led service providers to seek more favorable regulatory environments abroad.

The Wells Notice issued to OpenSea, signaling increased regulatory focus on NFTs, prompted structural changes at Magic Eden. The marketplace separated its domains between the US and global markets, frustrating US users, some of whom called for withdrawals of their holdings.

Notably, both OpenSea and Magic Eden are leading the NFT marketplace rankings, consistently ranking among the top three based on trader count metrics.

Read more: 10 Best NFT Marketing Agencies To Promote Your Digital Art

NFT Marketplace Rankings Amid Digital Chamber NewsNFT Marketplace Rankings. Source: OpenSea

A recent report revealed that 96% of NFT projects are considered dead, with issues like rug pulls and wash trading among the key challenges. Unfair regulatory pressure could further exacerbate these problems, potentially worsening the trend.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Nvidia stock sinks 4% as Trump’s tariff plans rattle AI tradeNvidia shares fell over 4% early Monday after US President Donald Trump delivered a stern message about trade tariffs. Trump said on Sunday that no country would be given any special treatment regarding tariffs. He also signed new trade policies into effect on April 2, which he calls “Liberation Day.” This frightened investors, who had […]
Author  NewsBTC
Apr 01, Tue
Nvidia shares fell over 4% early Monday after US President Donald Trump delivered a stern message about trade tariffs. Trump said on Sunday that no country would be given any special treatment regarding tariffs. He also signed new trade policies into effect on April 2, which he calls “Liberation Day.” This frightened investors, who had […]
placeholder
Bitcoin Price Bounces Back—Can It Finally Break Resistance?Bitcoin price started a recovery wave above the $83,500 zone. BTC is now consolidating and might struggle to settle above the $85,500 zone. Bitcoin started a decent recovery wave above the $83,500
Author  NewsBTC
Yesterday 03: 37
Bitcoin price started a recovery wave above the $83,500 zone. BTC is now consolidating and might struggle to settle above the $85,500 zone. Bitcoin started a decent recovery wave above the $83,500
placeholder
Bitcoin Price Struggling but Short-Term Holders Might Be Setting the Stage for $150KBitcoin has recently displayed signs of upward momentum, trading at $85,215, marking a 2.2% increase in just the past day. Despite this short-term gain, the asset remains down by over 21.2% from its
Author  NewsBTC
21 hours ago
Bitcoin has recently displayed signs of upward momentum, trading at $85,215, marking a 2.2% increase in just the past day. Despite this short-term gain, the asset remains down by over 21.2% from its
placeholder
U.S. March Nonfarm Payroll Preview: Even If Data Aligns with Expectations, Financial Markets May Not Escape the Fate of VolatilityOn 4 April 2025, the United States will release its March Nonfarm Payrolls (NFP) data. The market consensus currently anticipates job growth of 128,000, a decline from February’s 151,000 (Figure 1). W
Author  TradingKey
21 hours ago
On 4 April 2025, the United States will release its March Nonfarm Payrolls (NFP) data. The market consensus currently anticipates job growth of 128,000, a decline from February’s 151,000 (Figure 1). W
placeholder
Gold price stabilizes ahead of Trump's tariffs announcement on “Liberation Day”Gold price (XAU/USD) stabilizes just above $3,130 at the time of writing on Wednesday following a mean reversal move the prior day after a fresh all-time high got eked out at $3,149 before closing in negative territory.
Author  FXStreet
20 hours ago
Gold price (XAU/USD) stabilizes just above $3,130 at the time of writing on Wednesday following a mean reversal move the prior day after a fresh all-time high got eked out at $3,149 before closing in negative territory.
goTop
quote