Are we on the cusp of a new digital diaspora of American artists? It sounds dramatic, I know. The U.S. Government’s proposed tariffs on digital assets and blockchain technologies would bring about the most drastic shifts. They would drive US-based NFT creators out of the market they were instrumental in helping to pioneer. Forget the metaverse, more like meta-mess for US artists.

The $34 Billion Elephant in the Room

The NFT-as-a-Service (NFTaaS) market is exploding. Projections would have it exploding from $1.5 billion this year to almost $35 billion by 2033. That's a 36.9% compound annual growth rate. Let that sink in. This is what we’re describing when we talk about a tremendous opportunity for creators, for innovation, for a new wave of digital artistry. As it stands today, the US is a leader on this stage. North America alone accounts for more than 40% of the total market. Yet again, are we about to do a dumb thing—to digital self-sabotage?

These tariffs, which are projected to raise costs by 10-15%, seem like a tax on creativity in the first place. Admittedly, some contend that the market is strong enough to handle these additional costs. They highlight the rosy long-term outlooks, the growth in gaming, virtual worlds and the metaverse. What does that mean for the one-off individual artist who’s barely getting by, minting their first NFTs, just hoping to break into this space? Can they absorb a 10-15% hit?

From Garage Band to Digital Artist

Think of it this way: imagine a young musician trying to make it. And they’re making a record in their garage, on borrowed equipment and just goodness gracious putting everything they have and are into the music they’re making. Now picture the government imposing a tariff on guitar strings, microphones, and recording software. All of a sudden, their dreams are that much more difficult to realize. And that’s exactly what these tariffs would do to NFT creators.

It’s not only the funding that matters, it’s the access to it. It’s really about creating an authentic, inclusive ecosystem that opens the door to anyone with talent and passion. When you raise the cost of entry, you invite exclusion. You favor those with deep pockets and established networks, while pushing out the independent artists who are the lifeblood of any creative movement. Are we truly supporting the next wave of digital creatives? Or, are we just screwing this up and creating a system that will only work for the rich.

Are We Leveling the Playing Field?

Let's be blunt: competition in the NFT space is already fierce. Ethereum-based platforms continue to be the primary way of creating, owning and trading NFTs —with creators competing for attention across a busy landscape. Now, throw tariffs into the equation, and you’re literally stacking the deck against US creators compared to their European and Asia-Pacific peers. These areas are boomtowns in the NFTaaS space. Without incurring similar tariffs, they will benefit from an enormous cost advantage.

This is not purely an economic issue, it’s a matter of equity. It’s not about shutting down TikTok, it’s about making sure US creators have a fairer opportunity to compete. Are we ready to rob their future prospects for our near-term benefit? Are we really going to give up our leadership in the NFT space to other regions just due to bad policy?

So, what can we do? We need to support US-based NFT creators. Buy their art. Share their stories. Push back against policies that would harm the creative community, rather than suppress it. Explore alternative platforms and funding options. We shouldn’t allow these tariffs to continue pricing our creators out of the market. Let’s make sure the digital revolution is one that includes the needs and aspirations of all of us—not just the privileged few. The future of digital art is at stake. This isn’t just an NFT thing, this is about the future of creativity, period.