The US District Court implied that NFT may be regarded as securities

On March 7, the U.S. District Court for the Southern District of New York recently confirmed for the first time that under certain circumstances, NFT can be recognized as a security under the Securities Act of 1933. Recently, the United States District Court for the Southern District of New York ruled on a class action lawsuit against the basketball theme NFT Moments. According to Howey’s test, the court recognized the NFT as an “investment contract” and rejected the defendant’s motion of rejection. The court pointed out that the plaintiff’s claim that Moments was reasonable for the securities. （jdsupra）

Interpretation of this information:

The U.S. District Court for the Southern District of New York has issued a groundbreaking confirmation that Non-Fungible Tokens (NFTs) can be considered as securities under the Securities Act of 1933 in certain circumstances. This ruling came after the court ruled on a class action lawsuit against NFT Moments, a basketball-themed NFT. The court used Howey’s test, which is commonly used to determine the status of securities, to classify the NFT as an “investment contract.” The defendant’s motion of rejection was rejected, and the court agreed with the plaintiff’s claim that Moments could be considered a security.

This ruling represents a significant step forward in the regulation of NFTs and the crypto industry as a whole. As more companies and investors enter the market, there is an increased need for clarity and guidance on the status of these assets. While not all NFTs may be considered securities, this ruling could open the door for further regulatory oversight if deemed necessary.