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Too Long; Didn't ReadThe application of securities laws to NFTs is far from clear. The regulatory environment for creators is increasingly unsafe. There are no guarantees as to what exactly constitutes a “security” in the eyes of the SEC. The first step in determining whether or not the sale of an NFT is a security offering is an examination of the two primary legal tests for securities.L O A D I N G. . . comments & more! Too Long; Didn't ReadThe application of securities laws to NFTs is far from clear. The…

Gary Gensler, chair of SEC, testifies during a Senate Banking, Housing and Urban Affairs Committee hearing in Washington, D.C., on Thursday, September 15, 2022. Photo: Graeme Sloan/Sipa USA (AP)Ethereum, the second largest cryptocurrency in the world, continued to plunge in price over the weekend following the network’s highly publicized technical change known as ‘the Merge’ last Thursday as well as comments from the head of the Securities and Exchange Commission that ether might need to be a treated as a security.…

Photo: Lauren DeCicca (Getty Images)What is crypto? Is it something that’s bought and sold like stock in a publicly traded company, or is it a commodity, something that itself can interact with futures agreements? It’s a question at the heart of new legislation that would grant oversight of digital assets to a relatively small regulatory body. This could incentivize even more bad actors to prey on the growing number of U.S. adults who have invested in cryptocurrency.Senators Kirsten Gillibrand of New York and Cynthia…