Further, serious consideration should be given to excluding digital assets outside of the investment context. . For example, as the IRS itself recognizes, many non-fungible tokens (NFTs) simply offer “ownership or license interests in artwork or sports memorabilia” analogous to physical souvenirs. So the IRS should limit reporting requirements for non-investment NFTs, such as by requiring reporting only for transactions occurring on trading platforms. Currently, every NFT sale or swap would potentially be a reportable transaction, a rule that would severely hamper growth in new commercial applications for NFTs.
