The tokenization of physical and digital art has many advantages. Some of the advantages create potential complexities under US law. Each situation is fact specific, but the following is a summary of some of the areas for which careful consideration is needed with tokenized art. This is not a complete list, but provides some of the most common issues that we typically see. These issues can impact the owners/creators of tokenized art as well as the exchanges and platforms that sell them.
The range of issues include anti-money laundering, OFAC, securities laws, copyright, patents, terms of service and much more. See here for a summary of these issues. For more information, please consider registering to attend our complimentary webinar on this topic on March 10, 2021 featuring Serena Tabacchi, CEO and Co-founder of the Museum of Contemporary Digital Art, and John Crain, Founder of SuperRare.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.