In using his huge platform to promote a digital asset he owns, Jimmy Fallon invited uncomfortable questions about the role of celebrity influence in the NFT craze.
The NFT market exploded last year, drawing attention for multimillion-dollar sales and buy-ins from celebrities, whom some of the assets depict. In addition to serving as representations of physical collectibles, backers of the tokens often tout their value as digital certificates of authenticity that can’t be replicated.
A key legal question is whether digital assets including NFTs are securities, and therefore subject to the same rules as stocks. Although the SEC has said that many tokens fall under its purview, some crypto enthusiasts argue regulations meant to police the equity markets shouldn’t also apply to virtual currencies.