Should NFTs be defined as consumer products?
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Should NFTs be defined as consumer products?
The American Digital Chamber of Commerce believes NFTs should be treated as traditional consumer goods.
Navigating Web3 tides with focused insightsSource: cryptoslate
Translation: Blockchain Knight
The Chamber of Digital Commerce (TDC) is urging Congress to pass legislation defining certain non-fungible tokens (NFTs) as consumer goods, thereby exempting them from federal securities laws.
This comes amid growing concerns over the Securities and Exchange Commission’s (SEC) recent enforcement actions, including issuing a Wells notice to NFT marketplace OpenSea.
In a statement released on September 10, the Chamber of Digital Commerce argued that NFTs created for consumptive use—such as digital art, collectibles, and video game assets—should not be classified as financial products.
Instead, the organization maintains these tokens should be treated as traditional consumer goods.
The group emphasized that NFTs are typically purchased for personal use rather than investment purposes, and occasional resale for profit does not transform them into securities.
"TDC's 2023 'Pixels to Policy' report found that many NFT applications are clearly not designed as investment contracts or speculative financial instruments," the statement said.
The Chamber of Digital Commerce also stressed that, like traditional collectibles or artwork, the existence of a secondary market for NFTs does not inherently make them financial products.
The appeal comes as the SEC intensifies its actions against NFT platforms.
Recent lawsuits targeting companies such as DraftKings and Dapper Labs have raised alarms across the digital asset industry, with fears that overregulation could stifle innovation.
The SEC’s recent enforcement action against one of the largest NFT marketplaces, OpenSea, has further heightened these concerns.
"SEC Chair Gary Gensler’s enforcement-by-enforcement approach is inappropriate and has already endangered countless individuals who rely on NFTs for their livelihood," the Chamber of Digital Commerce stated.
The organization warned that the current lack of clear legislation is pushing NFT creators and businesses overseas, where regulatory environments may be more favorable.
The Chamber of Digital Commerce is now urging the U.S. Congress to clarify that NFTs used for consumptive purposes fall outside the SEC’s jurisdiction.
It also issued a warning about how ongoing regulatory uncertainty could harm both the industry and the broader U.S. economy.
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