NFTs could soon be labelled securities: Former SEC lawyer

Former SEC lawyer Alma Angotti says an OpenSea employee’s insider trading charge could lead to NFTs being labelled as securities. The official said that NFTs could become securities under the Howey Test. The Howey Test is used to assess if a transaction is an investment contract or security, that must be disclosed and registered. An investment contract exists when the investor expects to profit from others’ efforts.