Rep. William Timmons (SC-04) and Rep. Ritchie Torres (NY-15) recently introduced H.R. 10544, the New Frontiers in Technology (NFT) Act. The NFT Act takes the first steps to clarify the legal and regulatory treatment of non-fungible tokens (NFTs), specifically consumptive NFTs - those used for private, personal, or familial reasons are in fact not Securities. The bill defines NFTs as unique, cryptographically recorded assets on a public distributed ledger, excluding financial instruments like stocks or securities, and establishes protections for “covered NFTs,” such as those representing art, collectibles, or virtual assets, while excluding tokens marketed primarily as investment opportunities. Additionally, it directs the Comptroller General to conduct a study on non-fungible digital assets within one year of the bill's enactment.

“The federal government often lags behind in understanding new and emerging technology,” said Rep. William Timmons. “Creators and consumers of NFTs deserve regulatory certainty and a more clear understanding of how they are defined by the government. That is why the New Frontiers in Technology Act is so important, and I thank my colleague Rep. Torres for joining me in this important and bipartisan effort.”

“I’m proud to co-lead the New Frontiers in Technology Act, which brings much-needed clarity to the regulatory treatment of non-fungible tokens,” said Rep. Ritchie Torres. “This legislation ensures that personal-use NFTs are not burdened by outdated securities laws while addressing the risks of investment-focused digital assets. By fostering innovation and protecting consumers, this bill positions the United States to lead in the rapidly evolving digital economy. Together, we are setting the foundation for a future where creativity and technology thrive.”

The NFT Act is supported by the Blockchain Association and the Digital Chamber.

“Non-fungible tokens – or NFTs – are unique digital assets that can take the form of artwork, music, or any type of digital collectible, allowing artists and collectors alike to certify ownership on the blockchain. The ‘New Frontiers in Technology Act,’ introduced by Rep. William Timmons, is a productive start to the conversation on how Washington can better clarify the basic definition and rules around NFTs, ensuring American artists and innovators are protected in this cutting-edge space.” — Blockchain Association CEO Kristin Smith

“The Digital Chamber proudly supports the New Frontiers in Technology (NFT) Act, a transformational piece of legislation that provides essential clarity by distinguishing many non-fungible tokens (NFTs) as non-financial products, fostering peace of mind for creators and consumers alike. This step forward unlocks the vast potential of NFTs across industries, supporting their growing use cases and innovations while addressing concerns over recent regulatory overreach by the SEC. We commend Congressman Timmons for his leadership in championing this critical legislation and advocating for American innovation, ensuring the United States remains a global leader in the digital economy.” — The Digital Chamber

The full text of the NFT Act can be found HERE.