Greenville Leader

Rep. William Timmons and Rep. Ritchie Torres have introduced a bipartisan bill known as H.R. 10544, or the New Frontiers in Technology (NFT) Act. This legislation aims to clarify the legal and regulatory status of non-fungible tokens (NFTs), particularly those used for personal purposes, which it specifies are not securities.

The bill defines NFTs as unique assets recorded cryptographically on a public distributed ledger, distinct from financial instruments like stocks or securities. It establishes protections for "covered NFTs," such as art, collectibles, or virtual assets while excluding tokens marketed primarily as investment opportunities. The Comptroller General is tasked with studying non-fungible digital assets within a year of the bill's enactment.

"The federal government often lags behind in understanding new and emerging technology," said Rep. William Timmons. "Creators and consumers of NFTs deserve regulatory certainty and a more clear understanding of how they are defined by the government. That is why the New Frontiers in Technology Act is so important, and I thank my colleague Rep. Torres for joining me in this important and bipartisan effort."

"I’m proud to co-lead the New Frontiers in Technology Act, which brings much-needed clarity to the regulatory treatment of non-fungible tokens," stated Rep. Ritchie Torres. "This legislation ensures that personal-use NFTs are not burdened by outdated securities laws while addressing the risks of investment-focused digital assets."

The NFT Act has received support from industry groups including the Blockchain Association and the Digital Chamber.

"Non-fungible tokens – or NFTs – are unique digital assets that can take the form of artwork, music, or any type of digital collectible," said Blockchain Association CEO Kristin Smith regarding their support for the act.

"The Digital Chamber proudly supports the New Frontiers in Technology (NFT) Act," expressed The Digital Chamber about their endorsement.