Many NFTs Are Not Securities, Says SEC Commissioner Hester Peirce

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

Speaking at the SEC Speaks 2025 event in Washington, D.C., Peirce addressed ongoing concerns about the regulatory treatment of digital assets, including crypto tokens and NFTs.

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

What did Hester Peirce say about NFTs?

Commissioner Peirce stated that many NFTs do not fall under the definition of a security. However, she clarified that some digital assets—including NFTs—could be treated as securities if they are distributed as part of an investment contract. According to Peirce, this occurs when buyers are led to expect profits that depend on the actions of a central entity.

Peirce said the SEC’s current approach, which relies heavily on enforcement rather than published guidance, has left many in the industry without clear direction. She said that the legal analysis should consider how an asset is structured, marketed, and sold—not simply the asset type itself.

She referenced the creation of a new Crypto Task Force, which is collecting feedback and working toward more formal regulation. Peirce also renewed her call for a Safe Harbor framework aimed at giving crypto projects a defined period—such as three years—to develop and grow without registering their tokens as securities. During this time, projects would be required to meet basic disclosure and investor protection standards.

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

What does this mean for NFTs?

Peirce’s recent comments highlight the need for clearer regulatory definitions regarding NFTs and other digital assets. Whilst her view is that many NFTs are not securities, the SEC has not issued formal guidance distinguishing which NFT-related activities may fall under securities law.

In the absence of published rules, NFT creators and platforms remain subject to interpretation and potential enforcement based on how their assets are sold and promoted.

Peirce said that additional clarity could come through future SEC rulemaking or legislative action.