Crypto startups should be allowed to raise funds through NFTS, SEC Leadership says

SEC Crypto Task Force lead Hester Peirce said on Friday that crypto projects like StonerCats, which used NFTS as a funding mechanism to fund their work, could be exempt from securities regulations and could soon receive that clarity from strong regulators.

Behind the scenes on SEC’s first Crypto Roundtable Friday afternoon, Peirce leads the SEC effort after Gary Gensler along with the performance of SEC Chairman Mark Uyeda. Resignation-I said that Decryption She is heartened by her positive reaction to the statement issued yesterday declare Cryptographic mining for proof does not fall under the definition of a securities. Peirce said NFTS could become the next asset category that agents will address in a similar exemption statement.

“Peirce said:

An NFT is a digital token that exists in blockchain networks such as Ethereum and Solana. They are usually linked to digital art and are bought and sold in the secondary market as tradeable assets. The NFTS market peaked in the second half of 2021, $25 billion Highly enthusiasts and enterprising crypto entrepreneurs use these tokens to nurture billions for a variety of ventures.

The commissioner detailed that statements about the non-security status of certain types of NFTs can open up art NFTs while also creating NFTs that resemble Flyfish Clubs and Stoner Cats.

Stoner cat, Animation Series Produced by actress Mila Kunis, she raised about $8 million through NFT sales to fund the show. NFTS provided holders with certain perks, including access to view the series, but was also available for trade in the secondary market. Each secondary market transaction provided 2.5% royalty to the Stoner Cats team. That is, the percentage of each sale was sent as revenue to the team behind the project.

In a similar situation, Flyfish Club It raised over $14 million through NFT sales and funded the construction of a private restaurant exclusively for members. NFT, which offered holder memberships to restaurants, was resold in the secondary market where similar royalty structures were located.

If the SEC immediately issues such NFT statements, as well as the workplace certification code mining and statements issued in recent weeks, Meme Cointhe declaration effectively informs the open season of projects that utilize tradable NFTs as perks as a means of fundraising.

That therefore does not mean that if the project features NFTS, it will be exempt from securities regulations, Peirce stressed on Friday.

“You can have an NFT, which is tokenized security, and it could be configured as an NFT,” she said. “Obviously, it won’t be carved.”

A similar push is currently underway in Congress to protect certain financing activities through the sale of NFTS. As a crypto-related law It has begun to pass through the House and Senate, and some lawmakers have defended it. Include language With a bill that legalizes the sale of NFTS, which offers perks such as membership, products, artwork and more.