CTF Written Submission
Re: Blockchain Association Request for Interpretive Guidance
Aug. 8, 2025
- NFTs that have utility or consumptive value at the time of sale—such as access to content, services, or experiences—should be presumed not to be securities, even if purchasers speculate on resale value.
- NFTs that resemble traditional securities (e.g., stock-like features, dividend rights, or revenue-sharing commitments) may be classified as securities. However, NFTs lacking such economic rights—even if they include resale royalties—should not be presumed to be securities.
- General promotional language or statements of intent by NFT creators do not create a reasonable expectation of profits under the Howey test. Only clear commitments to generate and distribute profits to purchasers may trigger securities law implications.
Last Reviewed or Updated: Aug. 8, 2025