Crypto Gloom

Most NFTs are not securities.

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Hester Pierce, a US securities exchange, widely known as a “encryption mother” in the encryption space, continues to defend the agenda related to tokens that cannot fail within the Cryptographic Regulatory Committee. In her latest encryption push, the SEC commissioner insisted that tokens designed to compensate for digital art producers should not be considered securities over time, especially over time.

Most NFTs are not securities.

On May 19, in the blog post, Hester Pierce, the commissioner of the US Securities and Exchange Commission, shared thinking about token products without encryption and crowds. Before starting, Pierce denies his view as a commissioner and does not necessarily match the committee or fellow securities and exchange commissioners.

The recent remarks of Hester Peirce, a SEC encryption task force lead, have been very interested in the incomprehensible tokens, especially the NFT -related tokens and blockchain platforms. According to the SEC commissioner, the impossible token collection is not securities, and it is not advocating other approaches when regulating these digital assets.

Crypto Mon argues that many irreversible tokens, including NFT designed to compensate for producers over time, are not securities. This NFT is driven by a smart contract, which can be used to automatically transmit some of the NFT’s selling price to artwork producers whenever it is reselled. Just as the streaming platform pays a royalty to a song or video producer every time the user plays, the NFT can allow artists to enjoy the gratitude for the value of work after the initial sales.

Pierce also argues that the “Creator Royalty” feature of a particular NFTS does not provide interest in the rights of NFT owners, business companies, or “traditional interests related to securities.” In encryption, “security” means the security of the technology itself (such as a blockchain) and the protection of digital assets and user information. Security tokens are cryptocurrencies of certain types of cryptocurrencies that indicate ownership or rights of real assets, such as stocks of a company or real estate.

Pierce pushes more NFT agenda

Earlier this year, the US Securities and Exchange Commission (SEC) held its first roundtable meeting. Hester Peirce defended the encryption startup to use an unsuccessful token as a fundraising mechanism at this meeting led by Mark Uyeda, who was in charge of Gary Gensler. If she succeeds in exempting the majority of NFT in the Securities Act, NFT will be adopted in large scale between the creators, business and institutions.

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