Many NFTs are not securities, says SEC Commissioner Hester Perth

SEC Commissioner Hester Peirce has publicly stated that many NFTs do not qualify as securities under US law.

Speaking to the SEC, Perth addresses on the 2025 event in Washington, DC, and addresses ongoing concerns regarding the regulatory treatment of digital assets, including crypto tokens and NFTs.

Her remarks followed a series of enforcement actions by the SEC that raised questions about how NFTs should be categorized and whether they fall under existing securities regulations.

What did Hester Peirce say about NFT?

Commissioner Perth said many NFTs do not fall under the definition of security. However, she revealed that some digital assets, including NFTs, could be treated as securities if distributed as part of an investment agreement. According to Peirce, this occurs when buyers are led to expect benefits that rely on the actions of central entities.

Peirce said the SEC’s current approach, which relies heavily on enforcement rather than public guidance, leaves many people with no clear direction in the industry. She said that legal analysis should consider how assets are structured, sold and sold, not asset types themselves.

She referenced the creation of a new cryptographic task force, collecting feedback and working towards more formal regulation. Peirce also updated the Safe Harbor Framework’s call to provide Crypto Projects with a defined period of three years, developing and growing the tokens without registering as securities. During this time, the project is necessary to meet basic disclosure and investor protection standards.

The proposed framework is designed to apply to digital asset publishers, allowing them to reach network maturity or decentralization before facing full regulatory obligations. The Safe Harbor proposal has not yet been adopted by the SEC.

What does this mean for the NFTS?

Peirce’s recent comments highlight the need for a clearer regulatory definition of NFTs and other digital assets. In her view, many NFTs are not securities, but the SEC has not issued formal guidance highlighting which NFT-related activities may fall under the securities law.

Without publicly published rules, NFT creators and platforms continue to be subject to interpretation and potential enforcement based on the way assets are sold and promoted.

Peirce said it could become even more clear through future SEC rules creation or legislative measures.