SEC Chief Remains Vague on NFT Rules Despite Criticism, Leaving Crypto Firms Wanting Clearer Guidance

SEC Chair Gary Gensler said a physical Pokémon card is not a security, but was vague on whether a tokenized Pokémon card NFT could be.
New York Rep. Ritchie Torres called Gensler's responses "incoherent" and said tokenization does not turn a non-security into a security.
Tokenized collectibles allow digital ownership tracking, earning royalties, and easy trading.
Crypto companies want regulatory clarity from Gensler and the SEC on what constitutes a security under the Howey Test.
Torres said the Howey Test requires an actual contract, not just a digital asset, to be considered a security.

decrypt.co

Relevant topic timeline:

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The U.S. Securities and Exchange Commission (SEC) treating a non-fungible token (NFT) as a security for the first time highlights the need for developers to consider regulatory compliance when selling crypto-assets.

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