NBA Top Shot NFTs Ruled as Securities in Landmark Case Against Dapper Labs


  • A U.S. district judge has ruled that NBA Top Shot NFTs are securities, potentially impacting the broader NFT market and regulatory landscape surrounding it.
  • The ruling is based on the Howey test, which evaluates whether an investment contract is a security, and could have significant implications for NFT issuers and platforms, as well as investors.

NBA Top Shot, the popular NFT collectibles platform created by Dapper Labs, is at the center of a landmark case that has ruled that Top Shot NFTs are securities. This ruling could have significant implications for the broader NFT market and the regulatory landscape surrounding it. 

The rise of non-fungible tokens (NFTs) has been one of the most notable developments in the cryptocurrency space in recent years. NFTs are digital assets that represent ownership of a unique item or piece of content, such as artwork, music, or collectibles. NFTs have gained popularity due to their scarcity and ability to provide a verified record of ownership and authenticity.

However, the regulatory status of NFTs has been somewhat unclear, with some experts debating whether they should be considered securities under U.S. securities laws. The recent ruling against Dapper Labs, the company behind NBA Top Shot, has now provided some clarity on the matter. While the ruling specifically relates to NBA Top Shot NFTs, it could have broader implications for the entire NFT market, which has seen explosive growth in recent months.

What is the Howey Test and Why Does it Matter?

U.S. District Judge Gonzalo Curiel has ruled that Top Shot NFTs meet the definition of an investment contract under U.S. securities laws. The Howey test, which is used to determine whether an investment contract is a security, evaluates whether there is an investment of money in a common enterprise with the expectation of profits solely from the efforts of others.

The judge determined that Top Shot NFTs meet these criteria, as investors put money into a common enterprise (the platform), with the expectation of profits based on the success of the platform and the efforts of Dapper Labs.

Dapper Labs Plans to Appeal the NBA Ruling

Dapper Labs has responded to the ruling, stating that it plans to appeal the decision as it disagrees with the judge’s conclusion. The company argues that Top Shot NBA NFTs are not securities, as they are not investments in a common enterprise and do not meet the Howey test.

Dapper Labs also noted that Top Shot NBA NFTs are not sold with the promise of profits, as they are not tied to any underlying asset or revenue stream. Instead, they are purely collectibles, similar to trading cards or other physical collectibles.

Potential Implications for the NFT Market

If the ruling is upheld, it could have significant implications for the broader NFT market. Other NFT issuers and platforms may have to reassess their offerings and determine whether they meet the definition of securities under U.S. securities laws.

Investors may also need to be more cautious when investing in NFTs, as they may be covered by securities laws and subject to regulatory oversight. However, it could also provide more clarity and protection for investors, as they would be covered by existing securities laws.


The ruling that Top Shot NBA NFTs are securities is a significant development that could have far-reaching implications for the NFT market. While Dapper Labs plans to appeal the ruling, the outcome of the case will be closely watched by the NFT industry. If upheld, it could mean that NFT issuers and platforms will have to comply with securities regulations, potentially deterring some from entering the market. 

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Haseeb Shaheen

As a Web Researcher and Internet Marketer, Haseeb Shaheen delivers relevant valuable content for audiences. He focuses on financial and crypto market analysis, as well as technology-related areas that help people change their lives.

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