According to a comprehensive 112-page study conducted by the United States Patent and Trademark Office (USPTO) and the U.S. Copyright Office, current intellectual property laws are deemed sufficient to address copyright and trademark concerns related to non-fungible tokens (NFTs). Initiated at the request of former Democratic Senator Patrick Joseph Leahy and Democratic Senator Thom Tillis in June 2022, the study involved three public roundtables and input from various stakeholders. Despite acknowledging common trademark misappropriation and infringement on NFT platforms, the study concluded that no immediate changes to existing laws or registration practices are necessary.

Stakeholders echoed this sentiment, expressing apprehensions that NFT-specific legislation could stifle the ongoing evolution of NFT technology. While some cautioned against potential misuse of trademarks to exploit consumer data, the study emphasized the current adequacy of intellectual property laws.

The regulatory landscape surrounding NFTs in the United States has witnessed varying degrees of ambiguity. Notably, in August 2023, Impact Theory, a California-based media company, settled charges brought by the U.S. Securities and Exchange Commission (SEC) in the inaugural NFT-related enforcement action. Impact Theory’s offering of NFT tiers, promising investor profits, led the SEC to classify these NFTs as securities. Although this case didn’t establish a blanket classification for all NFTs, it highlighted regulatory scrutiny in the space.

Moreover, the study pointed out the challenge of enforcing trademark registrations for physical goods against similar digital goods tied to NFTs, citing a lack of definitive legal precedent. Despite these complexities, even public figures like Donald Trump have ventured into the NFT realm, further illustrating the dynamic nature of the market.