Welcome to Compliance Hot Spots, our weekly snapshot on white-collar, regulatory and compliance news and trends. The D.C. legal community is closely watching the trial of former Perkins Coie partner Michael Sussmann. Read my coverage of opening arguments here. Today, we outline the regulatory and enforcement risks associated with the growth of the NFT market. Plus, DOJ brings a rare civil FARA action against a high-profile defendant and the DOJ and SEC bring the hammer down on an Allianz subsidiary. Contact me at [email protected] and @AGoudsward on Twitter.
A non-fungible token (NFT) is a special type of cryptographic token that represents something unique. Credit: Rokas Tenys/Shutterstock.com
NFT Uses Multiply—And So Do the Regulatory Risks
The market for non-fungible tokens—known as NFTs—has soared in recent years, expanding to a multibillion-dollar market that’s generated countless get-rich-quick schemes and exclusive celebrity giveaways.