Davis Polk partner Joseph Hall recently authored “Are Nonfungible Tokens Securities?” in Law360. In the article, Hall discusses the complexities of the status of nonfungible tokens (NFTs) under federal securities laws. “Fungibility is doubtless an extremely useful quality in a security, and generally a precondition to a deep and liquid secondary market,” Hall wrote. “But is nonfungibility enough to be sure an asset isn't a security? No.” He noted that while many securities exhibit fungibility, it is not a necessary characteristic.