Distinguishing Digital Collectibles from Digital Currency

After FTX collapsed, state legislators rushed to regulate crypto and blockchain businesses – but they didn’t distinguish between financial businesses such as currency traders and consumer products such as sports-card traders. Our clients needed to quickly educate policymakers about the different business models to ensure new legislation would not impose inappropriate regulations on their business.

Target: State legislators and financial services regulators

Solution: RXN engaged lobbyists in six states as new bills were introduced. We educated elected officials about NFT technology,  products, consumer risk, and existing legal protections. We testified for clients in hearings, recruited prominent consumer brand supporters, and generated questions in hearings that produced favorable answers on the public record. 

Result: We successfully defeated or amended legislation in New Jersey, Connecticut, Missouri, and California and created a favorable public record about the limits of a new California law. Legislation is still active in California (a third bill), Pennsylvania, and New York. 

In Addition: RXN traced the origin of several overbroad bills to a Uniform Law Commission “digital currency” model bill that legislators were misinterpreting and misusing. We persuaded the ULC to add a note explaining that “digital currency” and “digital assets” are different and that the model law is not intended to be extended to digital assets to its official commentary.

Next project

Send us a message

Confirmation Message copy: Thank you for your interest in working for The RXN Group.  We are always looking for talented, curious, and motivated professionals to join our team. We will review your message within the next 72 hours.
Oops! Something went wrong while submitting the form.