The Securities and Exchange Commission studies the NFT (non-fungible token) market to see whether the sales comply with the agency's rules. A Bloomberg report, citing people familiar with the subject, says that the focus of the probe is to see if certain NFTs and digital assets can be used to indicate ownership of items such as painting or sports collectibles.
Related: US Treasury Finds NFTs Present Financial Risks
The persons mentioned that the tokens act as traditional securities as they can be used for fundraising. Also, the SEC wants to get information about fractional NFTs, which means that assets can be divided into units that people can buy and sell easily. Over the last several months, the regulator has sent subpoenas to different projects requiring information about the token offerings.
There isn't an official public announcement about the investigation yet and it may not lead to an enforcement action.