The US Securities and Exchange Commission (SEC) has set its eyes on the market for non-fungible tokens (NFTs) in order to find out whether illegal activities involving unregistered securities are taking place, Bloomberg has reported.
According to the publication's sources, the regulator wants to find out whether some NFTs can be considered securities.
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The SEC is reportedly investigating whether "certain non-fungible tokens are being used to raise money as traditional securities."
The regulator has been sending out subpoenas over the past few months requesting information about specific NFTs and other token offerings. In particular, it wants to find out how fractional NFTs, in which a more valuable NFT is tokenized into smaller pieces and sold again, are being used.