Crypto Czar classifies NFT and meme coins as collectibles

David Sacks has introduced a new perspective on non-fungible tokens (nfts) and meme coins, describing them as a distinct class of digital assets.

In an interview with Fox Business, the ai ​​and crypto czar spoke about the increasing complexity of classifying digital assets, categorizing the two as collectibles.

Digital asset classification

“When you talk about digital assets, it could mean a lot of things… you're talking about a vast area of ​​innovation,” Sacks said in the <a target="_blank" href="https://www.foxbusiness.com/politics/trumps-ai–crypto-czar-david-sacks” target=”_blank” rel=”noopener” data-wpel-link=”external”>interview. He explained that virtual assets cover a broad spectrum, including securities and commodities, placing nft and meme coins in the collectible category.

This classification could influence how the two are perceived, shifting the focus from their volatility to their potential as items of cultural and commemorative importance. The sacks elaborated on this idea, comparing said assets to traditional souvenirs.

Speaking at the Official Trump Meme Coin (Trump) based in Solana, he said:

“I think the Trump coin is a collectible. It's like a baseball card or a stamp. People buy it because they want to commemorate something.”

However, he clarified that his statements should not be interpreted as a regulatory position.

nft Coin and Meme Legitimacy Debate

The legitimacy of non-fungible token and meme currencies remains a hot topic. Last August, nft marketplace Opensea received a Wells notice from the SEC over claims that such assets on its platform could be considered unregistered securities. In December, gaming-focused nft project Cyberkongz received a similar warning from the regulator.

This debate has intensified with the recent releases of the official Trump and Melania meme coins. Senator Elizabeth Warren, a crypto skeptic, has urged federal regulators and the government ethics office to investigate the Trump Meme coin. In a January 22 letter, he alleged that he had enriched the president and provided a means for crypto funds to flow to him.

In a recent press briefing, Trump downplayed the situation by saying he did not know if he had benefited financially from the project and claimed he had no knowledge of the currency's value.

The introduction of these tokens also caused some constitutional compliance concerns, with the coin's Zack Guzmán noting that, while the emoluments clause prohibits presidents from profiting from their office, meme coins defy these existing rules.

Meanwhile, billionaire investor Mark Cuban previously dismissed Project Trump as a gamble, suggesting it could damage the reputation of the crypto industry, especially if proper regulations were not in place. Similarly, former Coinbase CTO Balaji Srinivasan described such tokens as speculative assets, famously calling them a “zero-sum lottery.”

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