I 
118TH CONGRESS 
2D SESSION H. R. 10544 
To specify the treatment of covered non-fungible tokens under the securities 
laws, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 20, 2024 
Mr. TIMMONS (for himself and Mr. TORRES of New York) introduced the 
following bill; which was referred to the Committee on Financial Services 
A BILL 
To specify the treatment of covered non-fungible tokens 
under the securities laws, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘New Frontiers in 
Technology Act’’. 
SEC. 2. TREATMENT OF COVERED NON-FUNGIBLE TOKENS 
UNDER THE SECURITIES LAWS. 
(a) IN GENERAL.—For purposes of the securities 
laws— 
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(1) a covered non-fungible token is not an in-
vestment contract; and 
(2) an offer or sale of a covered non-fungible 
token is not a transaction in a security. 
(b) DEFINITIONS.—In this section and section 3: 
(1) COVERED NON-FUNGIBLE TOKEN.— 
(A) IN
GENERAL.—The term ‘‘covered 
non-fungible token’’ means any non-fungible 
token which was developed primarily for per-
sonal, family, or household consumption, includ-
ing— 
(i) a work of art, musical composition, 
literary work, or other intellectual prop-
erty; 
(ii) a collectible, merchandise, virtual 
land, or video game asset; 
(iii) a digital identifier or other certifi-
cate or credential; 
(iv) an affinity, reward, or loyalty 
point; or 
(v) a right, license, membership, or 
ticket. 
(B) EXCLUSION.— The term ‘‘covered 
non-fungible token’’ does not include a non-fun-
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gible token that is marketed by an issuer or 
promoter— 
(i) primarily as an investment oppor-
tunity; or 
(ii) that promises future actions or a 
series of actions designed explicitly and for 
the purpose of increasing the value of the 
covered non-fungible token. 
(2) NON-FUNGIBLE TOKEN.— 
(A) IN GENERAL.—The term ‘‘non-fungible 
token’’ means any asset— 
(i) which is of such uniqueness or lim-
ited production that it can be independ-
ently assessed or identified; 
(ii) which is represented by a unique 
digital identifier; 
(iii) the record of ownership of which 
is recorded on a cryptographically secured 
public distributed ledger; 
(iv) which— 
(I) is a digital equivalent of a 
tangible or intangible good; or 
(II) has some other inherent 
function beyond the fact that the 
record of ownership of the asset is re-
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corded on a cryptographically secure 
public distributed ledger; and 
(v) the record of which can be exclu-
sively possessed and transferred, person to 
person, without necessary reliance on an 
intermediary. 
(B) EXCLUSIONS.—The term ‘‘non-fun-
gible token’’ does not include— 
(i) any note, stock, treasury stock, se-
curity future, security-based swap, bond, 
debenture, evidence of indebtedness, cer-
tificate of interest or participation in any 
profit-sharing agreement, collateral-trust 
certificate, preorganization certificate or 
subscription, transferable share, put, call, 
straddle, option, privilege on any security, 
certificate of deposit, or group or index of 
securities (including any interest therein or 
based on the value thereof); or 
(ii) any asset which, based on its 
terms and other characteristics, is, rep-
resents, or is functionally equivalent to an 
agreement, contract, or transaction that 
is— 
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