Crypto Czar Classifies NFTs 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 on the growing complexity of classifying digital assets, categorizing the two as collectibles.

Digital Asset Classification

“When you talk about digital assets, it could mean many things… you’re talking about a vast area of innovation,” Sacks stated in the interview. He explained that virtual assets cover a broad spectrum, including securities and commodities, placing NFTs and meme coins in the collectible category.

This classification could influence the way the two are perceived, shifting the focus from their volatility to their potential as items of cultural and commemorative significance. Sacks elaborated on this idea, comparing such assets to traditional memorabilia.

Speaking on the Solana-based Official Trump (TRUMP) meme coin, 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 and Meme Coin Legitimacy Debate

The legitimacy of non-fungible tokens and meme coins is still a hot topic. Last August, NFT marketplace OpenSea received a Wells notice from the SEC over claims that such assets on its platform might be regarded as unregistered securities. In December, the gaming-focused NFT project Cyberkongz was sent a similar warning from the regulator.

This debate has intensified with the recent launches of the official TRUMP and MELANIA meme coins. Senator Elizabeth Warren, a crypto skeptic, has urged federal regulators and the Office of Government Ethics to investigate the TRUMP meme coin. In a January 22 letter, she alleged it had enriched the President and provided a means for crypto funds to flow to him.

At a recent press briefing, Trump downplayed the situation by saying he did not know whether he had benefited financially from the project and claimed to have no knowledge of the coin’s value.

The introduction of these tokens also caused some constitutional compliance concerns, with Zack Guzman from Coinage noting that while the emoluments clause prohibits presidents from profiting from their office, meme coins challenge these existing rules.

Meanwhile, billionaire investor Mark Cuban previously dismissed the Trump project as a gamble, suggesting it could harm the crypto industry’s reputation, 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.”