White House advisor David Sacks argues that non-fungible tokens (NFTs) and meme coins do not belong in the securities or commodities category.
Instead, Sacks suggested they are better understood as collectibles, similar to items like stamps or baseball cards.
Sacks Argues Authorities Should Treat NFTs and Meme Coins as Collectibles
During a Fox interview on January 24, Sacks shared his views while discussing the Donald Trump-themed meme coin. He emphasized the sentimental value of these tokens, explaining that people often purchase them to commemorate events or celebrate figures.
“When you’re talking about digital assets, it can be multiple things. You’ve got digital assets that are securities, that are commodities, digital assets that are collectibles like NFTs or meme coins. So, you know, you’re talking about a whole vast area of innovation. And so digital assets can be a number of different things,” Sacks explained.
Notably, the GetTrumpMeme website had marketed the Trump meme coin as a tribute to the president’s determination and leadership. Over the past week, the digital asset gained market attention due to its ties with the president. However, some have criticized the token, citing conflict-of-interest claims.
Meanwhile, Sacks’ remarks bring renewed attention to the debate about classifying digital assets. While some view them as securities akin to stocks, others argue they resemble commodities like gold. Notably, the US Securities and Exchange Commission (SEC), under Gary Gensler, had designated some NFTs and cryptocurrencies as securities, creating tension within the industry over regulatory clarity.
However, efforts to address this ambiguity are gaining traction under Trump’s new administration. The President has tasked a newly formed crypto task force to make the US a emerging industry leader. This task would involve clearly defining digital assets, including what qualifies as a security, commodity, or collectible.
Sacks believes clearer regulations could reignite innovation within the US crypto industry. He noted that this would reverse the exodus of companies prompted by unclear policies under previous administrations.
“What the industry wants more than anything else is regulatory clarity. Just tell us what the rules are, and we will abide by them. The Biden administration would never do that, and because of that, all the innovation was basically moving offshore, and America was about to lose this technology of the future. We want that innovation happening here in the United States, and I think it will now because President Trump has declared that it must be the crypto capital of the world,” Sacks stated.
Market observers noted that the federal crypto task force and crypto-focused groups within agencies like the SEC and CFTC signal a more proactive approach to regulating the industry. These measures are already influencing the sector, with some companies considering a return to the US and others exploring expansion opportunities.
Wirex
YouHodler
eToro
eToro
eToro
eToro
Phemex
Zoomex
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
