NBA Top Shot News: A federal judge in Manhattan recently gave the first hint that NFTs will be regulated by ruling against Dapper Labs. It is a top NFT company and the company behind NBA Top Shot, CryptoKitties.
Dapper sought to have a lawsuit against the company dismissed on the grounds that it provided NBA Top Shot NFT Moments, in violation of securities laws. Judge Victor Marrero denied Dapper’s motion for dismissal, marking a first in the history of this innovative technology. Judge Victor Marrero ruled that Top Shot NFTs were securities, and a number NFT collectors expressed their appreciation on Twitter. Legal experts suggest that such quick responses may be premature.

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Jeremy Goldman is an attorney who specializes in blockchain technology.
This is a good option for most people who mint NFTs with public blockchains. Who also allows their NFTs trade on exchanges?
Goldman believes that Judge Marrero’s emphasis on Dapper Labs Flow blockchain being a private network may be a positive for the wider NFT market. The judge suggested that Dapper Labs’ creations of Top Shot NFTs and the Flow blockchain, upon which the NFTs were launched, could be considered securities.
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NBA Top Shot NFT Holders Believe in Dapper Labs

The judge ruled that Top Shot NFT holders must be interested in Dapper Labs’ success. Federal law in the United States states that security must have this type of relationship between a passive good or the active labor of another entity.
Dapper Labs is not looking good, even though Wednesday’s decision regarding the larger NFT market has a negative effect. Roham Gharegozlou was the founder and CEO of the company. In a letter to staffers, he responded with an announcement that Dapper would be experiencing a 20% staff reduction. Following a November 22% reduction, he also announced a 20% staff reduction at Dapper.

The question of whether the U.S. government views NFTs majority as securities has not been answered. The recent posturing may have helped to answer it.
Also read: Judge Rules NBA Topshot NFTs as Securities; Flow’s price on Freefall?

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