Q: Music NFTs
I own a music catalogue and want to make "music nfts" and sell them via Open Sea"? They would be sold only as collectibles with no promise of upside. Would the SEC look at them as securities?
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A:
If you're selling music NFTs as collectibles without any promises of profit or financial returns, the SEC is less likely to classify them as securities. The key factor is whether buyers are investing with the expectation of earning something in return. Since your NFTs are purely for collecting and don’t offer any stake in your music catalogue or future earnings, they typically fall outside the securities category.
However, regulations can be complex and may evolve over time. It’s important to ensure that your NFTs don’t include features that could be interpreted as investment opportunities. Avoid offering dividends, revenue shares, or any other financial benefits tied to the NFTs.
To stay compliant, keep up with the latest guidelines from regulatory bodies and consider seeking legal advice. This will help you navigate any potential changes and ensure that your NFT sales remain within legal boundaries. Being proactive can protect your business and provide peace of mind as you enter the NFT marketplace.
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