The Blubber

Non-fungible tokens (NFTs) and memecoins are neither securities nor commodities, according to White House crypto czar David Sacks, who instead describes them as “collectibles.”

“It’s like a baseball card or a stamp,” Sacks said in an interview with Fox Business on Thursday, referencing Trump’s wildly popular memecoin. “People buy it because they want to commemorate something.”

Sacks’ remarks touch on an ongoing debate about how to classify digital assets within the crypto industry. Some believe these assets should be treated as securities—tradable financial instruments like stocks—while others argue they are more like commodities, such as gold or oil. The distinction carries significant regulatory consequences.

“There are several categories to consider here, so defining the market structure is essential,” Sacks explained.

Tax and Securities Law Considerations
Under U.S. tax law, collectibles such as art and antiques already have a defined legal status.

“For tax purposes, the capital gains rate on collectibles is significantly higher,” said Patrick Sigmon, a tax attorney and partner at Davis Polk.

However, there are no specific market regulations for collectibles under U.S. securities law, according to Joe Hall, a capital markets attorney and also a partner at Davis Polk. Hall emphasized that Sacks’ comments don’t alter the legal status of NFTs and memecoins, but they do suggest that regulating these assets as securities may not be appropriate.

While Sacks’ remarks sparked renewed discussion about how digital assets might be categorized in the future, he ended the interview by expressing optimism about the regulatory direction under the Trump administration.

“What the industry wants more than anything is regulatory clarity,” Sacks said. He added that the right framework could encourage crypto companies to return to the U.S.