NFTs and Fractional NFTs: Legal and Regulatory Concerns for Creators and Investors
NFT as a Commodity, Securities Requirements, AML and Cybersecurity Issues
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will examine the current legal and regulatory framework around creating and marketing non-fungible tokens (NFTs). The panel will discuss regulation of NFTs as a commodity, potential securities requirements when fractional NFT interests are offered, and money-laundering and cybersecurity issues with the blockchain architecture in which NFTs are held and traded.
- Introduction to NFTs: how they are created, how they are identified, and where they reside on a blockchain
- NFT as a commodity
- Securities issues with fractional NFTs
- Howey test: registration/exemption requirements
- Sellers of fractional NFTs treated as broker-dealers
- IP considerations
- Bank Secrecy Act and AML concerns
- Cybersecurity issues with NFTs
- Consumer protection issues
The panel will review these and other important issues:
- What commodities regulations might apply to the sale of an NFT?
- When might securities registration and broker-dealer regulations be applied to fractional NFTs?
- How can NFT sellers ensure that the sale and transfer of an NFT do not violate Bank Secrecy Act and FinCEN regulations?
- What cybersecurity issues associated with the blockchain are of special concern with NFTs?
- What intellectual property rights are necessary for the issuance or subsequent sale or transfer of NFTs? What limitations do copyright and trademark laws place on issuance or sale of NFTs, including the sale of fractional shares? What are the risks of failing to comply with applicable intellectual property laws?
Andrew James Lom
Partner, Global Head of Private Wealth
Norton Rose Fulbright US
Mr. Lom is Co-Head of the firm’s Asset and Wealth Management International Business Group--U.S. and a member of... | Read More
Mr. Lom is Co-Head of the firm’s Asset and Wealth Management International Business Group--U.S. and a member of the firm's global Fintech team. He represents family offices, funds and institutional investors, and their related service providers, in transactional and regulatory matters. Building on his engineering background, Mr. Lom also works with clients to develop innovative products and services relating to cryptocurrency, blockchain and smart contracts. He has particular experience advising on complex governance matters and decision-making protocols for families, foundations and blockchain-based businesses, often involving multiple constituencies with varying goals, roles and capabilities.Close
Anthony R.G. Nolan
Mr. Nolan has a domestic and international practice that emphasizes lending transactions, fixed income securities,... | Read More
Mr. Nolan has a domestic and international practice that emphasizes lending transactions, fixed income securities, structured finance, structured products and derivatives. He often works at the intersection of finance and investment management, including trading and regulation of swaps and security-based swaps, loan trading, securities lending and repo as well as traditional borrowing and leverage transactions.Close
Mark H. Wittow
Mr. Wittow’s work focuses on complex intellectual property, technology and data related transactions and... | Read More
Mr. Wittow’s work focuses on complex intellectual property, technology and data related transactions and counseling, including the acquisition, development, marketing, licensing and distribution of mobile applications and computing devices, cloud-based software and other types of computing and data management services, other types of technologies, music, and other media content. He also advises clients on electronic commerce, data privacy and data protection issues, technology litigation settlements, and patent licensing and dispositions. Mr. Wittow provides advice to clients of all sizes on technology and content development, protection and licensing in a wide variety of industries. He is a frequent presenter and author on cloud computing, copyright and trade secret law developments and technology and patent licensing and transaction issues and is an active member of the CLE Board of the intellectual property law section of the ABA. Mr. Wittow is also an adjunct professor at the University of Washington and Seattle University law schools.Close