US Blockchain Group Wants NFTs Classified as Consumer Goods

The Digital Chamber (TDC), a blockchain-focused American advocacy group, has asked United States lawmakers to classify NFTs as consumer goods. The request comes after the U.S. Securities and Exchange Commission (SEC) argued that digital collectibles are securities and must be registered with the financial agency before being offered to local investors.

NFTs represent ownership of specific digital items like art, music, and virtual goods and have become very popular. However, the rules around NFTs are unclear. The SEC is on the side that some NFTs are securities, meaning they are subject to complex regulations designed for financial instruments.

The Digital Chamber of Commerce argued in its recent blog post that treating NFTs as consumer goods rather than securities could help clarify the legal status of these assets. This change would mean NFTs would be regulated by consumer protection laws, like other products such as collectibles, instead of the more restrictive rules that apply to securities. The advocacy group believes this could reduce the regulatory burden on creators and platforms while protecting consumers from fraud or misrepresentation.

The SEC issued a Wells notice to the NFT marketplace OpenSea in late August. The notice is a stepping stone toward a significant regulatory clampdown from the regulatory agency. While not supporting the securities agency’s move, OpenSea’s co-founder Devin Finzer noted that enforcement action would severely affect creators and collectors within the NFT ecosystem.

The Digital Chamber’s request highlights a broader debate over how digital assets, including NFTs, should be regulated. Some argue for a flexible approach to promoting growth in the U.S. digital asset market, while others believe stronger regulation is necessary to protect investors.

Whether lawmakers classify NFTs as consumer goods or securities could determine how U.S.-based investors interact with digital collectibles. It could also affect how regulators across other countries regulate digital assets like NFTs, potentially shaping the regulatory landscape for the digital asset industry.