Non-Fungible Tokens (NFTS) And the Challenge of Legal Status: A Comparative Analysis of Dispute Resolution Mechanisms

Abstract

The emergence of Non-Fungible Tokens (NFTs) as a novel digital asset class has precipitated significant legal uncertainty across multiple jurisdictions. Unlike fungible cryptocurrencies, NFTs encode uniqueness and provenance on distributed ledger technology, yet existing legal frameworks — conceived for tangible property, intellectual creations, and financial instruments — have proven inadequate in determining their precise legal character. This article engages in a rigorous comparative legal analysis of the legal status of NFTs in Uzbekistan, the European Union, and the United States of America, examining how each jurisdiction has — or has failed to — accommodate NFTs within property law, intellectual property law, securities regulation, and consumer protection frameworks. A central concern of the article is the application of alternative dispute resolution (ADR) mechanisms — including arbitration, mediation, and online dispute resolution (ODR) — to NFT-related conflicts. The article identifies critical lacunae in domestic and international legal frameworks and proposes concrete legislative reforms tailored to the Uzbek legal context, while drawing on best practices from comparator jurisdictions. The study concludes that regulatory clarity, combined with adaptable ADR infrastructure, is essential to foster a secure and equitable digital economy in the Republic of Uzbekistan and beyond.