SEC Chief Remains Vague on NFT Rules Despite Criticism, Leaving Crypto Firms Wanting Clearer Guidance
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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.
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New York Rep. Ritchie Torres called Gensler's responses "incoherent" and said tokenization does not turn a non-security into a security.
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Tokenized collectibles allow digital ownership tracking, earning royalties, and easy trading.
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Crypto companies want regulatory clarity from Gensler and the SEC on what constitutes a security under the Howey Test.
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Torres said the Howey Test requires an actual contract, not just a digital asset, to be considered a security.
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