The Blockchain Association’s chief legal officer said that‘“it would be absurdfor a US court to rule on whether digital assets on private blockchains are securities. It comes in the wake of a federal judge’s decision to allow a lawsuit against private NBA Top Shot Moments NFTs.
Are private NFTs securities?
Dapper Labs Inc has sought to dismiss a proposed class action lawsuit initiated by purchasers of its NBA Top Shot Moments NFTs. But U.S. District Judge Victor Marrero in Manhattan proved Dapper Labs wrong. According to him, Dapper should have registered the NFTs as titles. He explains his reasoning by linking their value to the success of the Dapper blockchain. The NFTs in question represent digital video clips of NBA game highlights. The judge also states that Dapper had reaped hundreds of millions of dollars by preventing buyers from ” to withdraw their assets for months.
Corner Telegraph now informs us that Jake Cervinsky, U.S. Attorney has stated: ” The judge didn’t decide anything. He allowed the case to proceed to a motion to dismiss because the securities claims were at least ‘plausible’, an extremely low bar and not a final decision at all “.
What do American lawyers think of this decision?
Jesse Hynes, an attorney, notes that motions to dismiss are rarely successful. MetaLawMan, another attorney, links to the Ripple v SEC case. Indeed, he thinks that Ripple could benefit from this situation. The fact that a public blockchain delivers the XRP justifies this opinion of the lawyer.
Immediately after the judge’s decision, the price of the Flow, Dapper Labs token, fell 6.4%. But its price has since started to climb again. Dapper Labs offers several other NFTs. What would be the impact for users if these private NFTs were considered securities?
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