SEC Clarifies NFTs Are Not Securities Under New Digital Asset Framework

The U.S. Securities and Exchange Commission has outlined a clearer stance on how certain digital assets are treated under securities law, stating that nonfungible tokens (NFTs) generally fall outside its scope. Chair Paul Atkins explained that NFTs are typically categorized as digital collectibles rather than investment contracts, which is the defining test for securities classification.

According to the agency’s updated framework, four categories of digital assets are usually not considered securities: digital commodities, digital tools, stablecoins, and digital collectibles such as NFTs. However, the classification still depends on how each asset is structured and used in practice.

Why NFTs Are Considered Digital Collectibles

Atkins emphasized that NFTs are often treated similarly to traditional collectibles like artwork or trading cards. Buyers usually purchase them as unique items rather than expecting profits driven by a third party’s efforts. This distinction separates them from assets that meet the legal definition of securities.

Shift in SEC Crypto Policy Approach

The regulator is also moving away from an enforcement-heavy strategy toward clearer guidance. This shift aims to provide more predictability for the digital asset sector while supporting innovation such as tokenization, which officials believe has long-term potential in financial markets.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.