The SEC also regulates trading in stocks, which are contracts that show ownership, just of a portion of a corporation instead of a piece of art. They’re both classified as securities because they can be bought, sold and traded as investments where people can stand to gain or lose large sums of money in said trades. They work in very similar, if not identical, ways. If the NFT did not function so much like a stock investment and was just something you could buy or sell as a regular good, then the implementation would not be so weird.
I believe NFTs are actually a good idea on paper for this use case. Our implementation of the idea is weird though.
I don’t know why the SEC though. NFTs are not “money”. It’s a contract that shows ownership. It’s a legal issue in my opinion
The SEC also regulates trading in stocks, which are contracts that show ownership, just of a portion of a corporation instead of a piece of art. They’re both classified as securities because they can be bought, sold and traded as investments where people can stand to gain or lose large sums of money in said trades. They work in very similar, if not identical, ways. If the NFT did not function so much like a stock investment and was just something you could buy or sell as a regular good, then the implementation would not be so weird.
Guess what the SEC enforces? You guessed it, laws!