Magic Johnson was on the Jimmy Kimmel show this week and made a great point for those that are listening to what he is saying. The keyword he talked about was collectible, think of NBA Topshot as a moment that you own like a trading card he said.
Why is this an important statement made by Magic Earvin Johsnon the SEC security exchange commission was reported by Bloomberg this week to be investigating the Bored Ape company also known as Yuga Labs one of the largest NFT projects around by all measures, cost of NFT, volume of trade etc.
I mention this briefly earlier this week in a post about the investigation https://activerain.com/blogsview/5754239/what-is-a-dao
So why this is an important statement is that if you overturn existing treatments of collectibles with regards to them being treated as a collectible and not a security then you will set a precedence to then over reach and go after art, coins, and collectible cards as well to be treated as securities.
The designation of NFTS as collectibles is key to the future of the collectors market.
I suspect if the SEC goes against Magic and deem NFTS to be non collectibles there will be Chrisities,Ebay, NBA, MLB, NFL and all major leagues, NFT marketplaces and others on line 1 with lobby money to get this over turned as quickly as possible along with all blockchain communities and DAO, we would in short order see the SEC defunded in the following year budgets and calls for government officials to reign in and put in check this out of control rule by enforcement action organization
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