In this week’s newsletter, read about how filmmaker Brian Frye and songwriter Jonathan Mann sued the United States Securities and Exchange Commission to clarify whether or not non-fungible tokens (NFTs) are securities, and find out why betting platform DraftKings is winding down its NFT business after facing legal developments. In other news, NFTs are facing their lowest monthly sales volume in 2024, video game pioneer Atari is bringing classic games onchain, and NFT and gaming blockchain Ronin has surpassed other networks in daily active users.
Artists sue SEC over confusing security status of NFTs
Law professor and filmmaker Brian Frye and songwriter Jonathan Mann are suing the SEC to determine whether NFTs fall under the government agency’s authority.
Lawyers representing the artists seek clarification on which acts could trigger securities laws regarding minting and selling art NFTs. The lawyers used Taylor Swift tickets as an example and argued that classifying NFTs as securities would be absurd.
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DraftKings kills NFT business, citing “legal developments”
DraftKings, a popular sports betting platform, has wound down its NFT business because of “legal developments.” On July 31, the company reportedly told users it would discontinue its NFT marketplace and fantasy sports game Reignmakers.
The announcement comes four weeks after a judge denied the company’s motion to dismiss a class-action suit alleging that their NFTs were unregistered securities.
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NFTs face lowest monthly sales since November 2023
NFTs are set to record their lowest monthly volume of 2024 in July. With only $393 million in recorded sales volume, NFTs are about to break the $438 million record set in June for the lowest monthly volume in NFT sales in 2024.
Even though NFTs experienced lower volumes, digital collectibles saw increased transaction volumes for the month. CryptoSlam data showed that almost 10 million NFT transactions occurred in July, a 73% increase from June’s record of 5.7 million…
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