SEC Commissioner Disputes Security Classification of Most NFTs

Hester Peirce, head of the SEC’s Crypto Task Force, has challenged the classification of most non-fungible tokens (NFTs) as securities. During a recent SEC event in Washington, Peirce argued that many NFTs do not meet the criteria for securities status due to their lack of economic rights associated with them. She highlighted that royalties provided by NFTs, similar to Spotify’s royalty system, are not indicative of economic rights and thus don’t classify as securities. )