TechFlow news, March 22 — According to Decrypt, Hester Peirce, head of the U.S. Securities and Exchange Commission's (SEC) Crypto Task Force, said on March 22 that crypto projects like Stoner Cats, which use NFTs as a fundraising mechanism, should be exempt from securities regulations. She also suggested that such projects may soon receive clear guidance from the powerful regulator.
On the sidelines of the SEC’s inaugural cryptocurrency roundtable, Peirce told Decrypt she was encouraged by the positive response to the agency’s statement issued the previous day, which clarified that proof-of-work crypto mining falls outside its definition of securities. Peirce indicated that NFTs could be the next asset class the agency addresses through a similar exemption statement.
"We could do something similar for NFTs," Peirce said. "If we can provide some kind of framework or reference point for NFT issuers, I think that would be very helpful."
She further explained that a statement clarifying the non-security status of certain types of NFTs could create space for art-based NFTs, as well as projects like Flyfish Club and Stoner Cats—both of which were sued under former chairman Gary Gensler’s leadership at the SEC.
