The Digital Chamber (TDC), a U.S. advocacy group focused on blockchain technology, has urged Congress to pass laws that would classify certain non-fungible tokens (NFTs) as consumer goods, not securities.
This call to action comes after the U.S. Securities and Exchange Commission (SEC) issued a Wells notice to OpenSea, one of the most popular NFT marketplaces. The notice suggests that NFTs traded on the platform might be considered securities — a classification that would bring them under SEC regulation.
TDC argues that NFTs serve various purposes, including digital art, collectibles, and video games. Many of these uses, the group contends, are “clearly not designed as investment contracts or financial tools for speculation.” As a result, it believes these types of NFTs should not be regulated as financial instruments but rather as consumer goods.
TDC criticized SEC Chair Gary Gensler’s “regulation-by-enforcement” approach, claiming it has negatively impacted people who depend on NFTs for their livelihoods. The group highlighted that this method threatens individuals who use NFTs to follow their passions, engage with their communities, and make a living by selling and trading digital goods.
The ongoing uncertainty around the regulatory status of NFTs has already affected several companies, including DraftKings and Dapper Labs. These firms have experienced setbacks due to unclear laws and actions by the SEC, which have caused other businesses and consumers to become cautious about engaging with the NFT market.
In its statement, TDC called on Congress to act, urging lawmakers to ensure the NFT industry “remains within the US, for the benefit of the US economy,” rather than moving overseas to countries with more favorable regulations. The group is asking for clarity, particularly when it comes to “Consumptive-Use NFTs.”
This is not the first time the issue has been raised. In July, two artists sued the SEC, seeking clarity on whether NFTs are considered securities and what legal obligations, such as registration and risk disclosure, apply to them before they can be sold.
