With offerings across a growing number of online platforms and increased trading volume, NFT issuers, promoters, and buyers should consider the legal and regulatory implications relating to NFTs and federal securities laws.
Throughout the first half of 2021, non-fungible tokens (“NFTs”) have continued to experience widespread adoption across a range of industries. Just last week, rights to a so-called CryptoPunk NFT, dubbed “Covid Alien,” was sold at a Sotheby’s auction for $11.7million. Thevarietyofusecases for NFTs, combined with rapid and significant growth in the number of offerings and—in some cases—the promise of a large potential upside for investors, have made NFTs increasingly popular. This increased interest from the public at large, especially from would-be investors, could very likely be followed by increased scrutiny from regulators.
‘Enforcement 40’ for 2020
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