US SEC Targets NFT Creators After Ripple Lawsuit
Amidst the intense battle between the US Securities and Exchange Commission and Ripple, Chair Gary Gensler expressed his intentions to provide stricter regulations for non-fungible tokens.
The involvement of the US SEC brought heavy concerns with NFT owners and Ripple investors, especially for those using XRP to make their trades.
A March 3 Bloomberg report announced that the US SEC is poking around the NFTs of investors using them as traditional securities. The SEC also sent subpoenas to those owning fractional NFTs that provide shares of a digital asset.
These abrupt movements are in line with US SEC chair Gary Gensler to ensure that cryptocurrency markets follow the government’s regulations. Gensler uses the Howey Test to determine an investment contract in a transaction.
BlockFi already paid a $100 million fine charged to the US SEC, worrying more cryptocurrency trading platforms, investors and traders.
The main interest of the US Securities and Exchange Commission can significantly decrease the activity in non-fungible tokens the same way as the XRP fluctuations during this lawsuit.
Since the Ripple lawsuit against the US Securities and Exchange Commission, the coin’s market value fluctuated with much volatility, representing how unsure traders and investors are about its outcome.
This news would also hit NFT investors and traders using Ripple (XRP) to buy these tokens. As interest for these tokens decreases, the Ripple (XRP) cases could decrease too.