The SEC is now aiming at the creators of NFTs in an effort to determine whether or not they violate its rules and regulations.
The financial regulator is growing concerned that NFTs are being used for unregulated securities token offerings, according to Bloomberg. The ongoing review is also examining fractional non-fungible tokens – when they are divided into smaller parts so that the artwork or unique item can be owned by several people.
Over the past few months, the SEC has sent subpoenas to NFT creators and various crypto firms and exchanges requesting more information, according to the report.
NFTs in The Spotlight
Late last year, SEC Commissioner Hester Peirce, also known as “Crypto Mom,” warned that the regulator would be turning its attention to non-fungibles next. “Given the breadth of the NFT landscape, certain pieces of it might fall within our jurisdiction,” she said at the time before adding, “people need to be thinking about potential places where NFTs might run into the securities regulatory regime.”
As it does with crypto assets, the…
