U.S. Lawmakers Advocate Legal Protections For NFTs In New Bill

According to PANews, two U.S. Congress members are advocating for legal protections for non-fungible tokens (NFTs) within a comprehensive legislative proposal aimed at establishing a more coherent regulatory framework for digital assets. South Carolina Republican Representative William Timmons is working to incorporate the 'New Frontiers in Technology Act' (NFT Act) into a revised version of the '21st Century Financial Innovation and Technology Act' (FIT21), which passed the House last year but has yet to receive Senate approval. The NFT Act, introduced by Timmons and New York Democrat Representative Ritchie Torres in December, seeks to classify certain NFTs as non-securities. This classification would cover artworks, video game assets, memberships, and other consumer areas outlined in the bill's text. Additionally, the legislation would direct the U.S. Comptroller General to study whether NFTs could serve as representations of documents, identification, or even government records in commercial settings. Previously, under the leadership of former SEC Chairman Gary Gensler, NFTs largely existed in a legal gray area. Currently, within the SEC, Republican commissioners argue that many enforcement actions against NFT projects authorized under Gensler's tenure were unjustified.