NFT rules in the United States
This is general information, not legal, tax, or financial advice. Verify the current rules with a qualified local professional and the official regulator before acting.
Buying, creating, and selling NFTs is legal in the United States as of February 2026. There is no NFT specific federal statute, but the SEC has brought enforcement where NFTs were marketed as investments, consumer protection and intellectual property laws apply, and the IRS uses a look through approach that can tax some NFTs as collectibles. This is general information, not advice.
Are NFTs legal in the United States?
Creating, buying, and selling NFTs is legal in the United States as of February 2026. There is no bespoke federal statute that governs NFTs as a category. Instead, existing laws apply depending on what an NFT actually is and how it is offered, which means the same technology can be treated very differently from one project to the next.
The most important legal question for many projects is the securities one. If an NFT is offered as an investment, with buyers led to expect profits from the efforts of others, it can be an investment contract and therefore a security under the Howey test. The Securities and Exchange Commission (SEC) has brought and settled enforcement actions on that basis, including cases in 2023 against projects that marketed NFTs as investments. A purely collectible or utility NFT that is not sold as an investment generally raises different questions.
Consumer protection and intellectual property
Beyond securities law, ordinary consumer protection and fraud rules apply. The Federal Trade Commission (FTC) and state authorities can act against deceptive marketing, and general fraud law applies to scams in the NFT market. Intellectual property law also matters, because minting an NFT does not by itself transfer the copyright in the underlying work, and disputes over rights and royalties are common.
As of February 2026 there is no single regulator for NFTs. Which rules apply depends on the facts, so a creator or buyer should consider the securities, consumer protection, and intellectual property angles together rather than assuming an NFT sits outside the law.
How NFTs are taxed
The Internal Revenue Service (IRS) treats crypto and NFTs as property. In Notice 2023 to 27 the IRS set out a look through approach for deciding when an NFT is a collectible. It looks through the NFT to the right or asset it represents and asks whether that underlying item is a collectible under existing tax rules. For example, an NFT that certifies ownership of a gem could be a collectible, while an NFT giving a right to use a virtual plot of land generally would not be.
The classification matters because long term gains on collectibles can be taxed at a higher maximum rate than other long term capital gains. Selling or swapping an NFT is a disposal that can create a capital gain or loss, and a creator who sells NFTs generally has ordinary income, which can carry self employment tax for a trade or business. This is general information, not tax advice, so confirm your position with a qualified tax professional before filing.
Buying crypto to take part
NFTs themselves usually trade on dedicated marketplaces rather than on the exchanges below. In practice many buyers first acquire crypto, often the network token used by a marketplace, through a registered exchange and then fund a wallet. To do that lawfully, use a platform that is registered with FinCEN and licensed to serve your state, and keep records for your tax reporting. The platforms below are genuinely available to United States residents as of February 2026, listed as a description of availability rather than a recommendation.
Compare available exchanges in the United States
These platforms serve United States residents as of February 2026. Compare them on fees, supported assets, state coverage, and registration before you choose. We list a platform here only where it is genuinely available to this country.
Regulator and sources
- Securities and Exchange Commission (SEC) enforcement actions, including 2023 settlements, where NFTs were offered as investments and treated as securities under the Howey test.
- Internal Revenue Service (IRS) Notice 2023 to 27 setting out the look through approach for treating certain NFTs as collectibles.
- Federal Trade Commission (FTC) and state authorities consumer protection and fraud rules that apply to NFT marketing and sales.
Frequently asked questions
Are NFTs legal in the United States?
Yes, as of February 2026. There is no NFT specific federal statute, but securities, consumer protection, intellectual property, and tax rules can apply depending on the facts.
Can an NFT be a security?
It can. If an NFT is offered as an investment with profits expected from the efforts of others under the Howey test, it can be a security, and the SEC has brought enforcement on that basis.
How are NFTs taxed?
The IRS uses a look through approach under Notice 2023 to 27. Some NFTs are taxed as collectibles, which can carry a higher long term rate, while others follow normal property rules. Creators generally have income.
Do I owe tax when I sell an NFT?
Generally yes. A sale or swap of an NFT is a disposal that can create a capital gain or loss, and collectible treatment can raise the rate. Verify your position before filing.
Where do I buy NFTs?
NFTs trade on dedicated marketplaces. You usually fund a wallet with crypto first, often bought from an exchange that is available in your state.
Related pages
Risk and change note: the legal treatment of NFTs depends on the facts and is still developing. The positions above carry an as of date and were last reviewed on June 8, 2026. Confirm the current rules with the SEC, the IRS, and a qualified professional before you act.
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