Whether NFTs should face securities-level regulatory scrutiny depends on their nature. NFTs, as non-fungible tokens, are unique digital assets, often tied to art or collectibles, but some function like financial instruments, raising regulatory questions. If an NFT represents ownership in an asset promising returns or operates like an investment contract, it may meet the Howey Test criteria for a security, warranting scrutiny akin to stocks or bonds. However, most NFTs are speculative collectibles, not inherently securities, and blanket securities regulation could stifle innovation. A tailored approach, distinguishing between utility-based and investment-driven NFTs, is needed. Regulatory clarity would balance investor protection with market growth, but overregulation risks pushing NFT innovation offshore.