A New York federal court has dismissed the class-action lawsuit against Dolce & Gabbana’s US division regarding its 2021 “Collezione Genesi” NFT collection. The plaintiffs had alleged the luxury fashion house violated securities laws by selling unregistered securities through its high-profile NFT drop, which included both digital wearables and exclusive physical items.
The ruling represents a significant victory for traditional brands venturing into Web3, establishing that not all NFT offerings automatically qualify as securities under US law. Judge Analisa Torres (who also presided over the Ripple vs SEC case) found the plaintiffs failed to demonstrate that D&G’s NFTs met the Howey Test criteria for investment contracts. The collection’s utility – including access to exclusive events and physical products – played a key role in the decision.
Legal experts suggest this outcome may encourage more luxury brands to explore NFT projects without fear of immediate regulatory backlash. However, the court left open the possibility for future cases involving different NFT structures, emphasizing each offering must be evaluated individually. As the fashion industry continues bridging physical and digital experiences, this decision provides welcome clarity while underscoring the need for careful legal structuring of Web3 initiatives.
