Are Sales of Nonfungible Tokens 'Investment Contracts' Subject To Regulation Under Federal Securities Laws?

The SEC and private plaintiffs have been targeting creators of NFTs, though it’s unclear whether NFT transactions may constitute “investment contracts” and thus be subject to regulation under federal securities laws. Partners Alexander Drylewski and Daniel Michael and counsel Shaud Tavakoli discuss recent litigation, highlighting guiding principles to derive from the developing body of case law.