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In this episode of the Legit Ledger, Sheppard Mullin attorney Jim Gatto joins Yasamin Parsafar to provide an overview of his recent article, NFT Regulatory Issues – a 2022 Review and 2023 Preview, discussing the latest with NFTs and the SEC and other issues.
What We Discussed in This Episode:
- What are fractional NFTs? Why might they lead to securities issues?
- How can companies selling NFTs or offering platforms where NFTs are minted, sold or traded avoid triggering securities fraud charges?
- What is the potential personal liability for anyone employed by a company involved in the minting, selling or trading of NFTs?
- Why should these types of companies consider implementing an insider trading policy?
- What are your thoughts about last year's Treasury Department study that identified high-value art (including NFTs) as vehicles for money laundering and terrorist financing?
- What prompted the OFAC to sanction an exchange and designate 57 cryptocurrency addresses associated with digital wallets as SDNs?
- What topics are the USPTO and Copyright Office considering as part of their joint study on IP law and policy in relation to NFTs?
- How do the SEC and FTC endorsement guidelines differ?
- What might 2023 have in store for NFT regulation?
About Jim Gatto
Jim Gatto is a partner with the Intellectual Property Practice Group in Sheppard Mullin's Washington, D.C. office, where he co-leads the Blockchain & Fintech Team. His practice focuses on blockchain, interactive entertainment, digital art, AI and online gambling. He advises clients on IP strategies, development and publishing agreements, licensing and technology transaction agreements, and tech regulatory issues. Jim has been involved with blockchain since 2012 and has been recognized as a thought leader by leading organizations, including Best Lawyers in America 2021-2022; Cryptocurrency, Blockchain and Fintech Trailblazer, The National Law Journal, 2018; and Thought Leader on Blockchain & Cryptocurrencies, National Law Review, 2018.
About Yasamin Parsafar
Yasamin Parsafar is a partner with the Intellectual Property Practice Group in Sheppard Mullin's San Francisco office, where she serves as co-leader of the firm's Blockchain & Fintech team. Her practice focuses on protecting her clients' intellectual property rights through counseling, prosecution, enforcement and litigation. Yasamin leverages her litigation experience to strengthen and protect her clients' intellectual property, manage risks and position businesses to succeed in the event of a dispute. She frequently advises and protects brands venturing into web3 on various issues related to non-fungible tokens, metaverses, games, online marketplaces and other platforms.