<ul><li>SEC Commissioner Hester Peirce stated that most NFTs, including those with creator royalties, likely do not fall under U.S. securities laws as they lack characteristics defining securities.</li><li>Peirce clarified that NFTs not involving business ownership or profit-sharing do not qualify as securities, even if they offer royalties on secondary sales.</li><li>NFT royalties were compared to music streaming payments, with Peirce emphasizing that this feature does not indicate investment intent and does not grant buyers ownership rights or future profits.</li><li>Peirce and legal experts believe NFT royalties were never considered securities under U.S. law, emphasizing the need for broader clarity on regulatory guidelines for NFT marketplaces.</li></ul>

SEC Hester Peirce Says NFTs With Royalties Don’t Qualify as Securities

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