SEC’s Hester Peirce Advocates for NFT Fundraising Flexibility in Crypto Projects

In recent discussions at the SEC’s inaugural cryptocurrency roundtable, Commissioner Hester Peirce articulated a perspective favoring the use of tradable NFTs for fundraising within cryptocurrency projects. Peirce hinted that the regulatory body might extend no-action relief to the NFT sector, similar to previous initiatives for Proof of Work mining. She highlighted examples such as Stoner Cats and Flyfish Club, emphasizing that these projects, which offer unique benefits like membership access, may not fit into the securities classification. This statement calls for a more defined regulatory framework to guide NFT issuers. It’s noteworthy that under Gary Gensler’s leadership, the SEC has pursued several enforcement actions against NFT initiatives. However, Peirce cautioned that NFTs with attributes reminiscent of traditional securities would still face regulatory scrutiny, underscoring the need for clarity in cryptocurrency regulations.