SEC Chair explains why NFTs fall outside of securities laws

Paul Atkins says nonfungible tokens are typically collectibles, not investment contracts, as the agency outlines new categories of digital assets outside securities laws.

After the US Securities and Exchange Commission (SEC) outlined four broad categories of digital assets that fall outside securities laws, Chair Paul Atkins offered further clarity on why nonfungible tokens (NFTs) generally do not meet that definition.

In a Wednesday interview with CNBC, Atkins reiterated that the agency’s recent interpretive release identified four types of digital assets that are typically not considered securities: digital commodities, digital tools, digital collectibles such as NFTs, and stablecoins.

During the interview, host Andrew Ross Sorkin pressed Atkins on digital collectibles, noting they could more easily resemble securities depending on how they are structured.

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