SEC may assign security status to NFT, and Tesla sells 10% of its bitcoins
Opinion: SEC may view NFT as a security in the future
The SEC has not yet developed a document regulating the work of the NFT. Tatiana-Eliza Vasilyeva, Managing Partner of Baseley&Partners, does not exclude that in the future the Commission will assign the status of securities to such assets. This can happen if investors start to profit from the NFT.
According to Vasilyeva, many experts believe that the profit from the monetization of the intellectual property portfolio falls under the Howie test. The Securities Commission uses it when evaluating an asset as a security.
However, the lawyer believes that the NFT will most likely not receive security status if its owner acquires non-commercial rights. As an example, Vasilieva cited the possibility of using a non-fungible token in the film industry.
“If we give the audience the right to participate in the distribution of royalties, the SEC and European regulators will most likely consider this a security token,” she said.
Tesla sold part of its Bitcoin assets
Tesla sold 10% of the BTC purchased earlier this year. However, the CEO of the company, Elon Musk, said that he still has his own assets in the form of bitcoins.
The founder of Barstool Sports, Dave Portnoy, stated on his Twitter account that Musk first acquired the cryptocurrency, and then allegedly carried out a scheme of manipulative BTC appreciation in order to sell it at a profit.
“No, you do not. I have not sold any of my Bitcoin. Tesla sold 10% of its holdings essentially to prove liquidity of Bitcoin as an alternative to holding cash on balance sheet,”Musk wrote in response to Portnoy’s tweet.
Binance prepares to launch NFT marketplace
Binance is preparing to launch a marketplace in the summer of 2021 where it will be possible to issue and transact with non-fungible tokens. This was said in a statement.
The Binance NFT marketplace will have the same account system as the main site of the crypto platform. New Binance NFT users will need to register on the cryptocurrency exchange website.
“Binance serves millions of users around the world, many of whom will now be able to access the booming NFT space. In line with our commitment to the freedom of money globally and building an inclusive ecosystem, the Binance NFT marketplace will also support small value creators by providing the highest liquidity and cheapest fees for users,” Binance CEO Changpeng Zhao commented on the initiative.