Newsletter #198: New NFT Act
Also, last week’s poll clearly indicates that NFT collectors value a culture-driven approach over a corporate-centric one.
This week’s featured collector is NetworkGamer
NetworkGamer is a game developer and NFT enthusiast. Check out their collection at lazy.com/networkgamer
Where Do You Stand on Doodles’ Shift Away From the “Extractive Corpo Era”?
In last week’s poll clearly indicates that NFT collectors value a culture-driven approach over a corporate-centric one, suggesting that many see genuine engagement, creative expression, and community-building as more meaningful than short-term monetary gains. The strong majority who favor Doodles’ new direction underscores a broader trend within NFT communities: enthusiasts are increasingly motivated by shared ideals and collaborative environments rather than just hype. At the same time, the dissenting minority—those preferring a more corporate stance or needing additional information—highlights a tension between sustainable growth and cultural authenticity. In essence, the poll suggests that while most Doodles supporters are rallying behind this cultural pivot, some remain cautious.
U.S. Congress Pushes for Clear NFT Protections: Inside the NFT Act
NFT collectors may soon get greater clarity and legal protections in the United States, thanks to a renewed push to pass comprehensive digital asset legislation known as the Financial Innovation and Technology for the 21st Century Act (FIT21). Introduced and initially passed by the House of Representatives last year, FIT21 was designed to give federal agencies like the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) clearer jurisdiction over cryptocurrencies and other digital assets. Now, two congressmen—Rep. William Timmons (R-SC) and Rep. Ritchie Torres (D-NY)—are trying to ensure that NFTs are explicitly included in an updated version of the bill. “Not only do we need rules of the road for stablecoins and digital assets, our NFT bill is a great opportunity to help create more clarity,” Timmons told Decrypt.
Timmons and Torres introduced the New Frontiers in Technology (NFT) Act in December, which for the first time would classify certain non-fungible tokens as non-securities. Under this proposal, NFTs tied to art, video games, memberships, and other consumer-focused use cases would enjoy a clearer legal status—something the community has long demanded. The push for NFT protections comes amid statements by Senate Banking Committee Chairman Tim Scott (R-SC), who remains “adamant” that crypto markets structure and stablecoin bills will advance in the Senate within the first 100 days of Donald Trump’s presidency. If NFT protections are codified in the updated bill, it could be a watershed moment for the community, particularly given the SEC’s history of vague guidance on how it views certain NFTs.
That vagueness reared its head most dramatically under former SEC Chair Gary Gensler, whose tenure saw high-profile enforcement actions against several NFT-focused projects, such as the forced destruction of NFTs tied to Mila Kunis’s “Stoner Cats” animated series. “There needs to be a regulatory framework in place to prevent the kind of weaponization of government that we saw under former SEC Chair Gary Gensler,” Torres said. He added that Gensler’s enforcement stance often discriminated against new technologies. “If the SEC is technology-neutral, as it claims to be, then the use of blockchain should be irrelevant,” Torres said in reference to some of the enforcement crackdowns.
Moving forward, the SEC’s new leadership signals a shift. Acting Chair Mark Uyeda and crypto task force lead Hester Peirce have expressed a more collaborative tone, distancing themselves from Gensler’s aggressive enforcement. Meanwhile, the NFT Act’s language also recognizes potential pitfalls, excluding any NFTs primarily marketed as investment contracts. By ensuring that only purely consumptive NFTs—like tickets, collectibles, or membership perks—are exempt, the bill aims to protect everyday creators and collectors without giving a free pass to unscrupulous actors. “The NFT Act is a crucial step toward regulatory clarity for both consumers and creators,” said The Digital Chamber’s Chief Policy Officer Cody Carbone. “We are hopeful this bill advances swiftly and is included in any broader crypto legislation considered by this Congress.”
Ultimately, the Timmons-Torres bill could be transformative for the NFT space, especially as mainstream brands—from McDonald’s to Disney—continue to explore tokenized assets. “We pass laws to apply not only to present administrations, but also future administrations,” Torres said, highlighting the long-term importance of establishing clear rules today. “There could be a future Gary Gensler chairing the SEC.” If the updated version of FIT21 passes with NFT-focused provisions intact, collectors and creators will benefit from a more consistent and fair regulatory environment. And with NFTs already serving as digital collectibles, membership passes, and beyond, the move signals a pragmatic step toward a more mature market—one where buyers and sellers can operate with confidence in the enduring value of blockchain-powered assets.
Learn more at Decrypt.
What’s your stance on the proposed NFT Act updates?
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