The U.S. Securities and Exchange Commission (SEC) is launching an investigation into the NFT market over potential violations against the agency’s rules.
A recent Bloomberg report stated that unidentified sources ‘familiar with the matter’ believe that the SEC is looking at whether or not NFTs are being used to raise money like traditional securities.
The audit is the latest attempt by the SEC to ensure that the cryptocurrency markets are following its strict regulations.
As a part of the SEC’s audit, they will take a close look at fractional NFTs. These involve breaking down a digital asset into separate units that allow for multiple people to claim ownership of a single token. The SEC believes that the process fractional NFTs take could potentially violate regulatory rules.
“Given the breadth of the NFT landscape, certain pieces of it might fall within our jurisdiction,”
Hester Peirce, SEC Commissioner on CoinDesk TV
There has been no word from the SEC on the audit as of yet. All news comes from anonymous sources because the probe hasn’t been disclosed publicly states Bloomberg.