A federal presiding judge said in a court document on February 22nd that tokens that could not be replaced at all times by NBA's top pitching could be considered a form of security under US security laws.

The ruling comes after Victor Masant, the chief judge of the federal government, dismissed a motion explicitly filed by CEO 18 Roham Garegozlu at Depper Lab, which provides for the dismissal of a class action claiming that Depper Labs NBA top pitching NFT is a security. When the appeal motion was dismissed, the court authorized the case to proceed smoothly. The Dapper Lab now has 21 days to clarify the court's decision.

During the ruling, the presiding judge checked the Howey test, which determined whether NFTs met the investment contract qualifications of the US securities method, according to court documents. Transactions that are identified as investment contracts are called securities.

Finally, the Supreme Court's conclusion that the Dapper Lab provided an investment contract under Howie was narrow. Not all the NFTs provided or sold by any company will constitute a loan guarantee, and each scheme must be evaluated on a case-by-case basis.

Judge Victor Masant also ruled that:

In turn, it happens that Depper's unique program in the circle of friends creates sufficient legal facts among investors and sponsors to create investment contracts, the next security under Hoy's leadership.

The class action was filed by appellant Jeeun Friel in May 2021 on suspicion of selling NFT as unregistered securities. It also claims that NBA Top Shoot intends to block collectors from acquiring assets for months, artificially exaggerating the market value of the site.

Regarding the decision of the presiding judge of Marreo, the spokesman for Dapper Labs informed Cointelegraph:

"most importantly, today's order-what the court calls' near death'- only dismisses the motion of dismissal put forward by the defendant during the defense of the case paper. The fact that it did not get the correct result of the appellant itself is not the final verdict of the facts of the case. The court has repeatedly found that under federal law, commodities-including collections such as handicrafts and basketball cards-are not securities. I always believe that the same is true of Wechat moments and other collections, be it numerical or otherwise, and we look forward to defending our views in court again with the case.

According to Dapper Labs, NBA Top Shoot generated more than $230 million in NFT sales as of February 2021, according to Cointelegraph.

The decision comes at a time when a more comprehensive debate is under way over whether different digital currencies should be called securities. On February 9th, the American Securities Trading Federation (SEC) announced that its overall bargaining service with Kraken, the password trading center, had reached 30 million US dollars. The SEC is still investigating traditional Wall Street investment advice, offering data asset escrow to users who are not moderately qualified.

Recently, the American Securities Trading Federation announced a $1.4 million settlement with former NBA player Wade Pierce, mainly because Pierce is suspected of promoting a representative new project on social platforms.

The article was upgraded at 9:00 on the evening of February 22, including a message from Dapper Lab on the case.