Following its failed pursuit of Ripple, the Securities and Exchange Commission (SEC) has set its sights on a new target: NFTs. According to Bloomberg, the US Securities and Exchange Commission (SEC) is looking into the designers of NFTs as well as the crypto exchanges where they are traded. This is to see if any of the assets act in a way that contradicts the commission’s guidelines.
The SEC’s investigations are focused on determining if NFTs are being used to raise money in the same way that traditional securities are. The inquiry appears to be vigorous, as SEC officials have issued subpoenas for information about these tokens for the past few months. A financial asset that can be traded is referred to as security. The Securities and Exchange Commission (SEC) is in charge of everything relating to securities.
According to Bloomberg, the SEC was looking for information on fractional NFTs as part of their investigation. These are NFTs that can be easily broken down into units sold or purchased. On the other hand, the government organization has yet to respond to this assertion.
Major investors are pouring hundreds of thousands of dollars into new initiatives and businesses due to the current craze for NFTs. Although NFTs have a small market compared to Bitcoin, they are projected to impact the blockchain sector significantly.