NFTs and Fractional NFTs: Legal and Regulatory Concerns for Creators and Investors

NFT as a Commodity, Securities Requirements, AML and Cybersecurity Issues

A live 90-minute premium CLE video webinar with interactive Q&A

Wednesday, August 25, 2021

1:00pm-2:30pm EDT, 10:00am-11:30am PDT

Early Registration Discount Deadline, Friday, July 30, 2021

or call 1-800-926-7926

This CLE webinar 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.


NFTs have emerged as a viable asset class in 2021. Like cryptocurrency, NFTs reside on the blockchain, but in contrast to cryptocurrency, they are unique and can represent a hard asset such as title to property or digital assets such as video images and tweets. As the market for NFTs and fractional NFTs evolves, counsel to NFT creators and the platforms should consider various legal and regulatory issues.

An NFT may be deemed a commodity, subject to general prohibitions on deceptive and manipulative trading under the Commodity Exchange Act. If offered on a leveraged basis, additional regulations could apply.

Investors may look to purchase fractional interests of an NFT, but such interests could be considered "investment contracts" subject to registration requirements of the Securities Act of 1933, and the sellers of fractional interests may be treated as broker-dealers under the Securities Exchange Act of 1934.

Activities related to the transfer, sale, and custody of NFTs may be subject to Bank Secrecy Act and FinCEN regulations. In addition, OFAC has pursued enforcement actions involving cryptocurrency transactions and blockchain technology--NFTs present a similar avenue of risk exposure.

Listen as our authoritative panel discusses the regulatory issues and legal risks associated with the marketing and sale of NFTs and fractional NFTs.



  1. Introduction to NFTs: how they are created, how they are identified, and where they reside on a blockchain
  2. NFT as a commodity
  3. Securities issues with fractional NFTs
    1. Howey test: registration/exemption requirements
    2. Sellers of fractional NFTs treated as broker-dealers
  4. IP considerations
  5. Bank Secrecy Act and AML concerns
  6. Cybersecurity issues with NFTs


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?


Lom, Andrew
Andrew James Lom

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

Nolan, Anthony
Anthony R.G. Nolan

K&L Gates

Mr. Nolan has a domestic and international practice that emphasizes lending transactions, fixed income securities,...  |  Read More

Attend on August 25

Early Discount (through 07/30/21)

Cannot Attend August 25?

Early Discount (through 07/30/21)

You may pre-order a recording to listen at your convenience. Recordings are available 48 hours after the webinar. Strafford will process CLE credit for one person on each recording. All formats include program handouts.

To find out which recorded format will provide the best CLE option, select your state:

CLE On-Demand Video