The number of NFT and metaverse cases is increasing in the United States. Although there is an economic value at stake, the existence of security interests (especially NFTs) has been debated for some time.
The Attorney General of the United States has stated that “it would be absurd to treat NFTs as securities. This statement sparked a great deal of debate.
When Did The Debate Over NFTs Begin?
In response to a recent class action lawsuit alleging that NBA Top Shot NFTs are securities, Jake Chervinsky, Chief Legal Officer of the Blockchain Association, spoke out. Chervinsky believes it is absurd to treat NFTs as securities.
Blockchain Association Chief Legal Officer Jacob Chervinsky stated that the U.S. court’s assumption that digital assets on private blockchains are securities is absurd.
Jake Chervinsky believes it is absurd to treat NFTs as securities.
According to Chervinsky’s petition, filed Feb. 22, NBA Top Shot Moments NFTs can be considered securities because they meet the requirements of U.S. securities laws.
The Blockchain Association’s statements came after the ruling on NBA Top Shot Moments NFTs.
What did Jacob Chervinsky say about NFTs?
After Federal Judge Victor Marreo denied Dapper Labs CEO Roham Gharegozlou’s motion to dismiss a class action lawsuit alleging that NBA Top Shot NFTs were securities, U.S. Attorney Jacob Chervinsky issued the following statements.
Chervinsky stated that the court has not yet made a decision and that it is unlikely that securities lawsuits will be allowed to proceed.
“Regardless of the case, it would be absurd to treat all valuable digital assets held in centralized systems as securities.”
Another U.S. attorney, Jesse Hynes, stated in a tweet on Feb. 22 that motions to dismiss are rarely successful because the plaintiff must present sufficient evidence to move the case forward.
In addition, another U.S. attorney, James Murphy, stated that Dapper Labs’ claim that it posted the NBA Top Shot Moments NFT on its privately managed blockchain was a key component in the court’s decision to deny the motion to dismiss.
In contrast, the class action lawsuit against Dapper Labs was first filed in May 2021 by plaintiff Jeeun Friel, who alleged that Dapper Labs offered the NFTs as unregistered securities.
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