This article comes fromDecrypt, original author: Sander Lutz

Odaily Translator |

This article comes from

, original author: Sander Lutz

Odaily Translator |

According to a leaked version of the draft bill obtained by Decrypt, the European Union's landmark, finalized draft legislation for the market in encrypted assets (MiCA) claims that NFTs sold as part of large collectible series have little or no unique attributes or uses, so they will Subject to the same regulatory scrutiny as cryptocurrencies.

According to Brian Fyre, a law professor at the University of Kentucky in the United States, the wording of the bill is equivalent to the European Union's classification of major blue-chip NFT series as securities, such as Bored Ape Yacht Club (BAYC), Cryptopunks and Doodles.

Fyre, who specializes in NFTs and securities law, commented, “It sounds like Europe is saying it believes that securities regulators should treat large PFP projects as securities for regulatory purposes.”

The EU's proposed MiCA for a comprehensive crypto regulatory framework has been anticipated for years and is expected to come into force in 2024. The draft MiCA obtained by Decrypt on Sept. 21 is expected to become the final version of the legislation, following months of negotiations between the European Parliament, the European Commission and the European Council.

The legislation first deals with the regulation of cryptocurrency activities in Europe, in principle it excludes from the scope of the regulatory framework "unique and non-homogeneous (including digital art and collectibles)" digital assets with "unique properties" , and grant "utility" to token holders.

However, the bill states that "the issuance of a cryptographic asset in the form of non-fungible tokens in a large series or collection shall be considered a sign of its fungibility."

The bill goes on to state that “it is not sufficient to classify a cryptoasset as unique or non-fungible on the basis of unique identifier attributes alone. The asset or right it represents should also be unique and non-fungible, such that a cryptoasset are considered unique and non-homogeneous.”

"What they're saying is that when you sell a series of 10,000 NFTs, what you're really selling is a share of the entire project," Fyre said. share."

According to Fyre's explanation, in essence, MiCA's wording claims that, in the eyes of the EU, each Bored Ape NFT holder does not own a unique piece of art, but rather owns the Bored Ape brand and its parent company, Yuga Labs. share of collective value.

While this may seem like a semantic distinction, if enacted as law and interpreted as described above, it could have a huge impact: it would be able to treat popular NFT series (such as BAYC, CryptoPunks, and Doodles, etc.) regulate it. This may lead to more involvement of European governments in such series of NFTs.

secondary title

The US SEC may consider regulating NFT in a similar way?

The question of which components of the crypto industry should be considered securities by government regulators has long been a hot topic, and has recently escalated. Earlier this week, the U.S. Securities and Exchange Commission (SEC) suggested in a federal filing that activity on the entire ethereum network should be considered securities exchange business within U.S. regulation.