US and EU Regulation on Fractionalized NFTs – Navigating Unchartered Waters

As is so often the case, technology and market trends are one step ahead of regulation. This is true also with regard to the newest investment model related to NFTs: Fractionalized NFTs (or F-NFTs) promise “democratization” and profit opportunities in the upscale market segment of high priced NFTs. Through the process of fractionalization, several investors shall simultaneously be assigned ownership and voting rights with regard to a unique NFT. Against the background of an increasingly important investment aspect in this context, the F-NFTs have attracted the attention of both, the US as well as EU regulators, which are called upon to issue clear guidelines as to the legal relevance of this token form under securities laws