Digital collectibles refer to crypto assets that express or transfer rights to art, music, video, trading cards, or game items, and memes are included in this category. The SEC has cited CryptoPunks, Chromie Squiggles, fan tokens, WIF, and VCOIN as examples of digital collectibles.
An important exception was noted. Most fractionalized collectibles are likely to be classified as securities since they depend on the managerial efforts of others.
However, it noted that additional information is needed to decisively determine non-securities. Additionally, memes could be converted into digital goods if their ecosystem functions are established.
A recent briefing describes digital collectibles as crypto assets that convey rights to art, music, video, trading cards, or game items, and it includes memes in this category. The description emphasizes how these assets express or transfer ownership and access within digital ecosystems.
The regulator cites CryptoPunks, Chromie Squiggles, fan tokens, WIF, and VCOIN as examples of digital collectibles. It underscores an important exception: most fractionalized collectibles may be securities because they depend on the management efforts of others to generate value. Additional information is needed to decisively classify some items as non-securities. The SEC notes that memes could transition to digital goods if their ecosystem functions are established.
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