Commissioner Hester Peirce, now at the head of the Crypto working group of the SEC, announced that projects using NFT as a financing mechanism could soon be exempt from securities regulations.
Crypto startups could soon raise funds via NFT
Hester Peirce, recently appointed head of the working group on the Crypto of Securities and Exchange Commission (SEC) following the resignation of Gary Gensler, made a significant announcement last Friday.
During the first crypto round table organized by the dry, it has noted to Decrypt that projects using NFT as a fundraising mechanism could soon be exempt from securities regulations.
This announcement is a continuation of a declaration published the day before by the agency, specifying that the mining of cryptocurrencies by evidence of work (proof-of-work) was not based on its definition of securities.
According to Peirce, who now directs the efforts of the dry alongside the acting president Mark Uyeda, the NFT could constitute the next category of assets to benefit from a similar exemption.
We could also do it for NFT. If we could provide a framework or benchmarks to NFT issuers, I think it could be very useful.
NFTs experienced their peak at the end of 2021, generating a market of almost $ 25 billion. Many entrepreneurs have used them as an innovative mechanism to finance their projects, opening an alternative path to traditional methods of fundraising.
Clear limits to this exemption
Despite this opening, Peirce wanted to specify that not all NFTs would be automatically exempt from the regulations on securities. She underlined:
We could have an NFT which would be a tokenized title, and it could be structured as an NFT. Obviously, this will not be excluded.
This distinction is essential to understand the scope of the future exemption which would mainly aim at art NFTs and those offering advantages such as memberships, exclusive access to content or derivative products.
A similar initiative also advances at the congress, where some legislators argue for the inclusion of a provision legalizing the sale of NFT for lucrative purposes in the bills on cryptos currently under discussion in the House of Representatives and in the Senate.
In short, if the SEC soon publishes a statement on NFTs, similar to those recently issued on working proof mining and the same corners, this could mark the start of a new era for the financing of blockchain projects via non -fungible tokens.
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