SEC’s Peirce Argues NFTs Without Securities Features Do Not Qualify

United States Securities and Exchange Commission (SEC) Commissioner Hester Peirce has made a statement regarding nonfungible tokens (NFTs) stating that many are likely not securities. In an address, she explained that those NFTs with mechanisms for creator royalties do not automatically become securities due to the nature of their distribution. This contrasts with stocks, which distribute proceeds to investors directly and is tied to company ownership.