- SEC is probing NFT creators for regulatory violations.
- This was revealed in a report released by Bloomberg.
- SEC is checking if NFTs are being used to raise money like traditional securities.
After its unsuccessful hounding of Ripple, the U.S. Securities and Exchange Commission (SEC) focuses on a new target — NFTs. According to a report by Bloomberg, The U.S. Securities and Exchange Commission (SEC) is scrutinizing creators of NFTs and the crypto exchanges where NFT trade is carried out. This is to determine if some of the assets are working in conflict with the commission’s rules.
The focus of SEC’s investigations is to assess whether NFTs are being utilized to raise money like traditional securities. The investigation seems to be aggressive because, for the past couple of months, attorneys in the SEC have been sending subpoenas demanding information about these tokens. A security is a financial asset that can be traded. And everything related to securities comes under the purview of the SEC ...