Top Summary
This bill mandates the Comptroller General of the United States to conduct a comprehensive study on non-fungible tokens (NFTs), examining their nature, use, similarities and differences with other digital commodities, minting and administration processes, storage methods, interoperability across blockchain systems, marketplace scalability, benefits such as verifiable ownership, risks including intellectual property, cybersecurity, and market risks, integration with traditional markets, potential for facilitating commerce through digital records, risks to traditional markets, and levels of illicit activity in NFT markets. The findings must be reported publicly within one year of the bill's enactment.
Original Bill Text:
SEC. 505.Study on non-fungible tokens.
(a) In general.—The Comptroller General of the United States shall carry out a study of non-fungible tokens that analyzes—
(1) the nature, size, role, purpose, and use of non-fungible tokens;
(2) the similarities and differences between non-fungible tokens and other digital commodities, including digital commodities and permitted payment stablecoins, and how the markets for those digital commodities intersect with each other;
(3) how non-fungible tokens are minted by issuers and subsequently administered to purchasers;
(4) how non-fungible tokens are stored after being purchased by a consumer;
(5) the interoperability of non-fungible tokens between different blockchain systems;
(6) the scalability of different non-fungible tokens marketplaces;
(7) the benefits of non-fungible tokens, including verifiable digital ownership;
(8) the risks of non-fungible tokens, including—
(A) intellectual property rights;
(B) cybersecurity risks; and
(C) market risks;
(9) whether and how non-fungible tokens have integrated with traditional marketplaces, including those for music, real estate, gaming, events, and travel;
(10) whether and how non-fungible tokens can be used to facilitate commerce or other activities through the representation of documents, identification, contracts, licenses, and other commercial, government, or personal records;
(11) any potential risks to traditional markets from such integration; and
(12) the levels and types of illicit activity in non-fungible tokens markets.
(b) Report.—Not later than 1 year after the date of the enactment of this Act, the Comptroller General, shall make publicly available a report that includes the results of the study required by subsection (a).