The SEC has provided legal clarity on NFT royalties, confirming that most non-fungible tokens (NFTs) with resale royalty mechanisms are not securities. Commissioner Hester Peirce explained that these royalty features align more closely with compensation models used in the music and film industries, where creators receive payments for their work’s secondary market resale. This stance was met with approval from the crypto community but sparked some misrepresentations from certain media outlets. While legal experts like Oscar Franklin Tan of Enjin believe NFT resale royalties are considered business income not investment income, which falls outside securities law, they also acknowledged that complexities can arise if royalty structures begin to resemble profit-sharing schemes. This distinction is crucial as it could draw regulatory scrutiny. On a related note, the SEC recently closed its investigation into OpenSea, a major NFT marketplace, after initially raising concerns about potential unregistered securities status. Meanwhile, South Korea is implementing stricter rules for non-profit crypto transactions, including mandatory real-name accounts and strict listing standards to prepare for increased institutional participation. This move is further supported by New York City Mayor Eric Adams’ commitment to making the city a hub for cryptocurrency innovation through blockchain technology.