Formally, the text of the Crypto Asset Markets Act (MiCA) is still open to amendment, but sources say the European Union has finalized the full text of the bill.
Once the MiCA is adopted, crypto asset issuers will be required to publish official documents containing technical roadmaps, and cryptocurrency platforms will be required to register with authorities. Issuers of stablecoins will be required to ensure the availability of sufficient capital.
According to one of the commentators on the MiCA cryptocurrency bill, University of Kentucky law professor Brian Fyre, there is another feature of the future law that determines the regulation of non-fungible tokens. The terminology and language of the bill is that the EU correlates large NFT collections such as Bored Ape Yacht Club (BAYC), Cryptopunks or Doodles with blue chips. Thus, legislators consider them as uncertificated securities:
“MiCA legislation, which primarily concerns the regulation of crypto-currency activities in Europe, excludes from its scope digital assets that are unique and not interchangeable. This applies to digital art and collectibles that have unique characteristics and utility.”
However, the bill explicitly states that “the issuance of crypto assets in the form of non-fungible tokens in a large series or collection should be considered as an indicator of their fungibility.”
Continuing the analysis of the MiCA bill, Fayra noted that according to European regulators, “the sole fact of assigning a unique identifier to a crypto asset is not enough to classify it as unique or not fungible.”
“They say that when you sell a collection of 10,000 NFTs, you are actually selling shares in the project as a whole. In other words, each NFT is functionally just a fraction of the cost of the entire project. Therefore, the NFT holder does not own a unique piece of art, but instead simply has a stake in the collective value of the brand and collection owner,” Fire explains.
Earlier, US Securities and Exchange Commission (SEC) Chairman Gary Gensler said that the software upgrade and Ethereum merger could turn the second largest cryptocurrency into a security, and ETH staking after the network merger may be subject to securities regulation laws.
Source: Bits
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