NFT News by Thebittimes.Com

The Coinbase vs. SEC case takes center stage as the leading exchange is set to argue why its traded tokens are not unregistered securities.  In June 2023, the SEC sued Coinbase, alleging the exchange traded 13 unregistered securities . The case is being heard by Judge Katherine Polk Failla today in the Southern District of New York. Insider reports from the hearing have revealed arguments and questions being asked by Judge Katherine Polk Failla. The judge scrutinized the Securities Act of 1933 as outdated by quoting pro-Bitcoin Senator Cynthia Lummis’ statement that the 90-year- old law does not consider new technologies like Bitcoin. The Securities Act of 1933 has been the SEC’s go-to guideline for most crypto cases.  *EDITING FOR CLARITY* Failla just asked the @SECGov why she shouldn’t listen to @SenLummis who says Failla should dismiss the case. “She’s not just a random Senator, she’s someone deeply involved in the space. Why is she wrong?” SEC lawyer says a Senator’s opinion… ...

Oscar Franklin Tan, the chief legal officer of NFT platform Enjin, told Cointelegraph that it’s very problematic to imply that all NFTs are securities, as it could hold back creators. The United States Securities and Exchange Commission’s (SEC) first enforcement action on a nonfungible token (NFT) project triggered responses from community members, who pointed out how the decision could be “problematic” for many NFT projects that fit the description and might be next on the SEC’s hit list.  On Aug. 28, the SEC charged the entertainment company Impact Theory for allegedly conducting the sales of unregistered securities . According to the SEC, the NFTs called “Founder’s Keys” were sold as an “investment into the business.” The company allegedly raised around $30 million through the sales. The SEC believes that the NFTs sold were investment contracts and qualified as securities. The filing noted that the firm violated the Securities Act of 1933 for selling the NFTs without registration. ...

The SEC Chairman has been accused of leading the Commission with his regulation by enforcement tactics, a system that has been called out by both lawmakers and leaders in the cryptocurrency ecosystem. Despite these criticisms, Gensler is unfazed, and maintains that the current SEC urities laws in the US are sufficient to guide the nascent Web3.0 world. advertisement Clarifying the misconception about most crypto assets receiving the tag of securities, Gensler said the definition of securities as given by Congress features 30 different things including stocks and investment contracts. The Investment Contract entails putting funds in a common enterprise with a reasonable expectation of profits derived from the efforts of others. Intermediaries for investment contracts are required to comply with securities laws & register with @SECGov. Instead, many crypto platforms are contending that their investment contracts are something else. Trendi...