White House advisor David Sacks says non-fungible tokens (NFTs) and meme coins do not belong in the category of securities or commodities.
Instead, Sacks suggested they are better understood as collectibles, similar to items like stamps or baseball cards.
Sacks argues that authorities should treat NFTs and Meme coins as collectibles
During an interview with Fox on January 24, Sacks shared his views while discussing the Donald Trump-themed meme piece. He emphasized the sentimental value of these tokens, explaining that people often buy them to commemorate events or celebrate figures.
“When we talk about digital assets, it can relate to several things. You have digital assets which are securities, commodities, digital assets which are collectibles like NFTs or meme coins. So, you know, you’re talking about a huge area of innovation. So digital assets can take different forms,” Sacks explained.
Notably, the GetTrumpMeme website had marketed the Trump coin as a tribute to the president’s determination and leadership. Over the past week, the digital asset has attracted market attention due to its ties to the president. However, some have criticized the token, citing allegations of conflicts of interest..
Meanwhile, Sacks’ remarks bring renewed attention to the debate over digital asset classification. While some consider them to be securities similar to stocks, others argue that they resemble commodities like gold. Notably, the United States Securities and Exchange Commission (SEC), under the leadership of Gary Gensler, had designated certain NFTs and cryptocurrencies as securities, creating tension within the industry over regulatory clarity.
However, efforts to resolve this ambiguity are gaining ground under the new Trump administration. The president has tasked a new crypto task force with making the United States an emerging leader in the industry. This task would involve clearly defining digital assets, including what is considered a security, commodity or collectible.
Sacks believes that clearer regulations could reignite innovation within the US crypto industry. He stressed that this would reverse the corporate exodus caused by the unclear policies of previous administrations.
“What the industry wants more than anything else is clear regulation. Just tell us what the rules are and we will follow them. The Biden administration would never do that, and because of that, all innovation was essentially offshored, and America was on the verge of losing this technology of the future. We want this innovation to happen here in the United States, and I think it will now because President Trump has said it needs to be the crypto capital of the world,” Sacks said.
Market observers have noted that the federal Crypto Task Force and crypto-focused groups within agencies such as the SEC and CFTC signal a more proactive approach to regulating the sector. These moves are already influencing the industry, with some companies considering a return to the United States and others exploring expansion opportunities.
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