tl;dr
White House advisor David Sacks argues that non-fungible tokens (NFTs) and meme coins should not be categorized as securities or commodities, but rather as collectibles like stamps or baseball cards. Sacks emphasized the sentimental value of these tokens and their role in commemorating events or cel...
White House advisor David Sacks argues that non-fungible tokens (NFTs) and meme coins should not be categorized as securities or commodities, but rather as collectibles like stamps or baseball cards. Sacks emphasized the sentimental value of these tokens and their role in commemorating events or celebrating figures. He believes that clearer regulations could reignite innovation within the US crypto industry and reverse the exodus of companies prompted by unclear policies under previous administrations.
The President has tasked a newly formed crypto task force to make the US an emerging industry leader, involving clearly defining digital assets, including what qualifies as a security, commodity, or collectible. These efforts signal a more proactive approach to regulating the industry and are already influencing the sector.
During a Fox interview on January 24, Sacks shared his views while discussing the Donald Trump-themed meme coin. He emphasized the sentimental value of these tokens, explaining that people often purchase them to commemorate events or celebrate figures.
Notably, the GetTrumpMeme website had marketed the Trump meme coin as a tribute to the president’s determination and leadership. Over the past week, the digital asset gained market attention due to its ties with the president. However, some have criticized the token, citing conflict-of-interest claims.
Meanwhile, Sacks’ remarks bring renewed attention to the debate about classifying digital assets. While some view them as securities akin to stocks, others argue they resemble commodities like gold.
Notably, the US Securities and Exchange Commission (SEC), under Gary Gensler, had designated some NFTs and cryptocurrencies as securities, creating tension within the industry over regulatory clarity. However, efforts to address this ambiguity are gaining traction under Trump’s new administration.
Market observers noted that the federal crypto task force and crypto-focused groups within agencies like the SEC and CFTC signal a more proactive approach to regulating the industry. These measures are already influencing the sector, with some companies considering a return to the US and others exploring expansion opportunities.