SEC Crypto Head Peirce: Supports Fundraising through NFTs, Related Projects May Be Exempted from Securities Regulation

Odaily Planet Daily News: Hester Peirce, head and commissioner of the SEC's crypto task force, stated that crypto projects such as Stoner Cats that raise funds through NFTs should be exempt from securities regulations, and revealed that the SEC may soon issue a clarification statement on this matter. Peirce stated in an interview backstage at the SEC's first crypto roundtable meeting that the SEC's statement yesterday that "proof of work mining is not a security" received positive feedback, and she believes that NFTs have the potential to become the next asset class to receive regulatory exemptions. She stated that it would be extremely helpful if the SEC could provide clear frameworks or reference marks for NFT issuers. Previously, Stoner Cats and Flyfish Club were sued by the SEC under former SEC Chairman Gary Gensler for their NFT fundraising activities. Stoner Cats raised $8 million for animation production by selling NFTs, while Flyfish Club raised over $14 million for private restaurant construction through NFT sales. These NFTs can be traded on the secondary market and have a royalty sharing mechanism. Peirce emphasized that even if exemptions are introduced in the future, not all NFT projects are automatically exempt from securities regulation. If NFT is essentially a securitized token, relevant regulations will still apply. In addition, the US Congress is also pushing for legislation to legalize NFT fundraising activities with rights, membership, or artistic attributes. （Decrypt）