In an article published by the Daily Business Review, Mitch A. Bierman and Eric Hockman commented on the latest crypto craze, nonfungible tokens (NFT). The new trend was prompted by individuals investing in digital files on blockchain, the record-keeping technology behind digital currency networks and a subject that has little to no governing legal precedents.
Eric and Mitch predicted a future in which NFTs and the platforms on which they are sold will be regulated similar to existing commodities markets. This could mean the marketplaces would be subject to trade and anti-money laundering regulations, and issues would arise regarding which jurisdiction’s laws will govern, given that purchasing an NFT in many cases requires only an internet connection to facilitate the purchase with a credit card or Bitcoin.
“The problem for courts and people, in general is it is an unregulated industry,” Eric said. “Most lawyers don’t have any idea how this works, but a lot of this stuff dates back to current law. NFTs are purely electronic creations, and there should be a way to buy and sell those things to people who want to collect them.”