It definitely seems easier to hunt bears than bulls. Because the period of shooting by sight is very clearly started. And this in the midst of a downturn in the cryptocurrency market. With on the “right side” of the viewfinder, regulators enforcing digital scorched earth policies. And a European territory in the starting blocks to start again the worst area in the world where you can settle in to participate in this ongoing innovation. Last example, processing NFT collectionslike the Bored Ape Yacht Clubwhose “non-fungibility” is questioned under the bill Mica.
The multiple attempts to regulate the cryptocurrency sector often come across the ignorance (or ill will) of those responsible for these texts. It is enough to see how the latter made its way to the . try to block Bitcoin, attacking his Proof of Work (PoW) system. This is for ecological reasons that are hardly quantified and documented. And while this industry already consists of more than 60% renewable energy. But it doesn’t matter because the obvious goal is to preventnot to understand…
An aggressive move from which the NFT tokens seemed to escape. Because their non-fungible nature makes them separate cryptocurrencies, with a unique aspect that is very different from simple financial tools. In any case, this was the trend up to now, embellished with a good dose of legal vacuum. But the European MiCA bill has been there. And according to the official definition, “the only assignment of a unique identifier to a crypto asset” is not sufficient to qualify it as unique or inoperable“. Which means ?
MiCA vs NFT – Non-non-fungible tokens?
Before moving on, it seems important to clarify a specific point. Because despite appearances, the question is not whether NFTs are financial securities. But much more to seek the means to enable the regulatory authorities to integrate them into their current sphere of competence. Even if that means twisting reality in their favor, without worrying about the ridicule or inconsistencies it inevitably generates.
And that is exactly what is happening in the present case. Of a mica bill claiming that the non-fungibility of collections from NFTs, such as the iconic Bored Ape Yacht Club, is not as obvious as it seems. And this even if the latter contains many thousands of copies with random rarities. A principle that gives each of them an unmistakably unique character. But it doesn’t matter because “issuance of crypto-assets as non-replaceable tokens in a large series or collection should be considered an indicator of their fungibility. »
” The mere assignment of a unique identifier to a crypto asset is not sufficient to qualify it as unique or ineffective. The assets or rights represented must also be unique and non-functioning for the crypto-asset to be considered unique and non-functioning. »
NFT – A “fungible part of an entire project”
The non-fungibility of sets of NFTs would therefore only be:a simple masquerade to hide financial securities. Or more certainly a specificity of the cryptocurrency sector that is currently excluded from the regulatory scope of the European Union. Reason why the creators of the MiCa account seem – voluntarily? – to forget “unique” and “utility” characters which allowed them to pass under their radar until then. But with a bottom price of just under 77 ETH (about $100,000), it couldn’t last long!
A finding made by Brian Fyre, law professor at the University of Kentucky. And the latter doesn’t mince words, compared to the will of the MiCA law in (un)favorableness of NFT tokens. Because according to him, the aim of the European authorities is to encourage their counterparts, such as the United States Securities and Exchange Commission (SEC), to “consider the major PFP (Profile Picture Projects) projects.” like effects, for regulatory purposes. »
” What they say is that when you sell a collection of 10,000 NFTs, you are actually selling shares of the project as a whole. In other words, each NFT is functionally only a replaceable portion of the value of the entire project.. »
So members of the MiCA Act have just officially invented the “non-non-fungible tokens”“. And as if by magic, the latter seem to fit perfectly into the regulated clown costume sewn to their attention. A semantic pirouette that makes you smile. But the consequences of which can be problematic in case of effective implementation of this legal text. Because that would not make their holders collectors of BAYC, but simple investors in the project initiated by the Yuga Labs structure. And their NFT tokens would therefore be financial securities only published by the latter…
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