Federal Judge Rules NBA Top Shot NFTs Can Be Considered Unregistered Securities
On February 22, 2023, United States District Court Judge Victor Marrero agreed with the plaintiffs who filed suit against Dapper Labs, noting that the NBA Top Shot NFTs may be unregistered or unregistered under the law. Can be an object. On May 13, 2021, Dapper Labs was sued by Jeeun Friel with the United States Securities and Exchange Commission for selling non-Top Shot NFTs and attempted to have the case dismissed before the court but Marrero defended the company. declined the offer. Marrero’s ruling of course allows the case to continue based only on the judge’s opinion that NBA NFC can be safely denied protection. Marrero also noted that the ruling does not apply to the sale and distribution of Flow, the native crypto asset of Flow Blockchain, whereas the Howey test was applied to NBA Top Shot “Moments” NFTs and its analysis supports the judge’s decision.
Certainly none of the tweets include the word profit, the ‘rocket ship’ emoji, the ‘stock chart’ emoji, and the ‘money bag’ emoji purposefully have a meaning and reflect financial return on investment It happens. The court noted that the plan to sell Moments was certainly ‘intertwined with an interest in Dapper Labs,’ and the blockchain and token it powers all along. Commenting on the lawsuit and the judge’s recent decision on Wednesday, the company took to Twitter to say, “Today’s order in the case of Friel v. Dapper Labs is what the Court characterized as a closed call and only at the pleading stage of the case.” declines our motion to dismiss the complaint”. The judge fails to conclude that the plaintiffs were right in their position, according to Non Labs, and this is not a final decision on the merits of the case, and the Court repeatedly recognizes that consumer goods are reasonable enough to include collectibles such as art and basketball cards. and are not “securities” under federal law. I believe the same is true for Moments and other collectible items and other digital or otherwise.