With the rise of illegal activity in NFT markets, the US Securities and Exchange Commission (SEC) has launched a new wave of investigations into these markets and NFT producers.
According to the Kevin Telegraph, the US Securities and Exchange Commission, led by Gary Gensler, chief executive of crypto-skeptics, has launched an investigation to identify possible cases of unregistered securities among NFT producers and markets.
Read also: Report: Increased use of NFT in criminal activities
Anonymous sources claim that the Securities and Exchange Commission is investigating whether special counterfeit (NFT) tokens, such as traditional securities, are used to raise money.
In the last few months, the commission’s lawyers have issued several subpoenas requesting information on some of the NFTs and tokens offered.
Over the last year, the committee has focused on digital currency lending projects, and we are now witnessing the committee’s strong involvement in NFT. This committee is particularly interested in how to use distributive NFT. These NFTs can be divided into smaller units for sale separately.
Of course, market participants have been seeing the warning signs of this study for some time. In March last year, Hester Peirce, also known as Crypto Mom, warned that selling split NFT could break the law.
It is preferable not to create something that is known as an investment commodity, as it is classified as a security.
This study is the latest in a wave of lawsuits that have recently begun to further control the digital currency market. The U.S. Securities and Exchange Commission recently fined BlockFi, a New Jersey-based digital currency lending company, $ 100 million in silver for failing to include the phrase “High interest rates: a product of borrowing as securities.”
Bitcoin and Atrium are not included (at least not yet) because the US Securities and Exchange Commission does not consider them securities; But they did not like other digital assets, most notably Ripple Lab, the parent company of XRP, which has been involved in a sale of unregistered securities since late 2020.
The publication Disturbances in the NFT Markets under the magnifying glass of the US Securities and Exchange Commission first appeared in digital currency.