The Law and the Blockchain: A Speculative Guide on NFT Classification and the Laws that Govern NFT Sales

Abstract

Non-Fungible Tokens (NFTs) have become a hot topic, especially during the COVID-19 pandemic. With this new wave of digital assets, comes decisions about how to govern their transfer from user to user. Between common law and the Uniform Commercial Code, depending on the type of NFT that is transferred, there is a sliding scale of when common law would govern and when UCC would govern each respective transaction. In this paper, NFTs are classified into seven distinct categories and the laws that govern their transactions are discussed with examples.