A US court ruling that virtual assets on blockchain systems are securities “would be ludicrous,” according to the chief legal officer of the Blockchain Association. That happened when a federal judge authorized a lawsuit against exclusive NBA Top Shot Moments NFTs.
A potential class action lawsuit brought by buyers of Dapper Labs Inc.’s NBA Top Shot Moments NFTs has been contested by the company. Nevertheless, Dapper Labs was mistaken, as US District Judge Victor Marrero in Manhattan demonstrated. He claimed Dapper was at fault for not registering the NFTs as trademarks. He supports his argument by emphasizing the importance of the Dapper blockchain to its worth. The NFTs in question are highlights from digital video clips of NBA games. According to the judge, Dapper raised hundreds of millions of dollars by delaying allowing customers to remove their assets for several months.
What are the US Lawyers’ Suggestions Regarding this Situation?
Attorney Jesse Hynes observes that successful requests to dismiss are few. Another lawyer, MetaLawMan, provides a link to the Ripple v. SEC lawsuit. He does believe that Ripple might gain from this circumstance. This legal expert’s conclusion is supported by the fact that the XRP is delivered over a public blockchain.
Following the judge’s ruling, the value of Flow, a Dapper Labs token, dropped by 6.4%. Yet since then, the cost has started to rise once more. More NFTs are available from Dapper Labs. What effects may consumers experience if these private NFTs were regarded as securities? The dilemma of NFTs being counted as securities seems like it will continue for a while.
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