US Securities agency investigating on NFTs marketplaces

Reportedly the SEC agency is trying to figure out whether NFTs projects are going under the Securities law or not. 

US Securities Exchange and Commission (SEC) is an agency that is responsible to regulate the spot cash market and also figuring out the assets, whether they are complying with the securities laws or not if they are security. At present, the SEC agency investigations on many crypto assets, whether they are security or not.

Recently Bloomberg published a report and claimed that the SEC agency is doing an investigation on the NFTs projects and NFTs marketplace exchanges, whether they are going under the securities law or not. 

Bloomberg report noted that an unnamed source citing this matter told about it to Bloomberg. 

“probe is looking into whether NFTs (non-fungible tokens) “are being utilized to raise money like traditional securities,”

In particular, the Federal agency is doing its research and Investigation to figure out whether these NFTs projects are doing something wrong because NFTs are usually holding the fraction or securitized value of crypto assets that can be owned in fractions.

However, the SEC Agency already noted that NFTs can be Deemed securities if they pass the “Howey Test”. 

Earlier in December 2021, Hester Peirce, SEC Commissioner, hinted that the SEC agency maybe doing some kind of inquiry on NFTs, during an interview with Coindesk Tv. 

“Given the breadth of the NFT landscape, certain pieces of it might fall within our jurisdiction,” the SEC commissioner said “People need to be thinking about potential places where NFTs might run into the securities regulatory regime.”

SEC vs Ripple on XRP 

At present, the SEC agency is fighting against San Francisco-based Fintech firm Ripple. According to the SEC agency, the XRP token of Ripple is a security and the Company sold more than $1 billion worth of tokens publicly, which was unlawful. 

Once during an interview, SEC chair Gary Gensler claimed that there are many crypto assets in the crypto indust which are security and all are just a matter of time. Gary hinted that the SEC agency will surely take action against such crypto-assets also, which are security and are unregistered with with the SEC agency. 

Read also: Gold seems better over Bitcoin amid current geopolitical situation: Ukraine crisis