According to a report by Decrypt, two US congressmen are pushing to include legal protection for NFTs in a broad bill to create a more reasonable digital asset regulatory framework. Republican Congressman William Timmons from South Carolina said he is trying to incorporate the "NFT Act" into a modified version of the so-called "FinTech Act of the 21st Century" (FIT21), which was passed by the House of Representatives last year but has not yet been approved by the Senate.

The "NFT Act," introduced by Timmons and Democratic Congressman Ritchie Torres of New York in December last year, will designate certain NFTs as non-securities, covering art, video game assets, membership rights, and other consumer areas outlined in the text of the bill. The bill will also direct the US Comptroller General to study whether NFTs can serve as representatives for documents, identity verification, or even government records in a commercial environment.

Previously, under former SEC Chairman Gary Gensler's leadership, NFTs were largely in a legal gray area. Now, within the SEC, Republican members believe that many enforcement actions against NFT projects under Gensler's authorization are unreasonable.