The article explores non-fungible tokens (NFTs), a fast-growing phenomenon in digital assets that are being used to buy and sell interests in music, art and collectibles, and how the laws and regulations governing this new blockchain-based asset are unsettled. The article notes that to-date, no US regulator has formally asserted jurisdiction over NFTs, although many different domestic regulators assert oversight over different aspects of digital assets — from the Financial Crimes Enforcement Network of the Department of the Treasury, to many states’ money transmitters’ authorities, as well as the Commodity Futures Trading Commission and the Securities and Exchange Commission. This is expected to change as the market grows and issues arise regarding ownership rights, theft or fraud, or the market collapses.
New York
