The Far-Reaching Impacts of 'NFTs Can Be a Security' Ruling
Securities Enforcement Defense attorneys Jessica Magee and Scott Mascianica and litigation attorney Andrew Balthazor authored a Law360 article about a New York district court decision that a non-fungible token (NFT) can, in certain circumstances, be classified as a security. Though the decision was issued at the motion to dismiss stage and the court was careful to cabin its holding to the specific facts of the case, the ruling will likely be used by other plaintiffs — and perhaps the U.S. Securities and Exchange Commission (SEC) — as a key part of their respective playbooks in pending and future securities and enforcement matters involving NFTs and other digital assets. In this article, the authors outline the path of this case through the courts and explain the lasting implications of the decision on the digital asset industry.
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