SEC specialist Hester Peirce says many NFTs are not securities

SEC specialist Hester Peirce has publicly stated that under U.S. law, many NFTs do not qualify for securities.

Peirce talked about ongoing concerns about the regulatory handling of digital assets, including crypto tokens and NFTs, at a 2025 SEC speech in Washington, D.C.

Her remarks follow a series of SEC enforcement actions that raise questions about how NFTs can be classified and whether they belong to existing securities regulations.

What does Hester Peirce say about NFT?

Specialist Peirce said many NFTs are not defined as security. However, she clarified that certain digital assets should be treated as securities if they are distributed as part of an investment contract. According to Peirce, this occurs when the buyer expects to obtain profits depending on the actions of the central entity.

Pierce said the SEC’s current approach relies heavily on law enforcement rather than published guidance, which leaves many in the industry without a clear direction. She said legal analysis should consider the structure of assets, the way they are sold and sold, not just the asset type itself.

She mentioned the creation of a new crypto task force, which is collecting feedback and working on more formal regulation. Peirce also re-called for a safe harbor framework to provide a defined period (e.g., three years) for cryptocurrency projects to develop and grow without registering its tokens as securities. During this period, projects will be required to comply with basic disclosure and investor protection standards.

The proposed framework is intended to apply to digital asset issuers, giving them time to achieve network maturity or decentralization before facing full regulatory obligations. The SEC has not yet adopted a proposal for a safe harbor.

What does this mean for NFT?

Peirce’s recent comments highlight the need for a clearer regulatory definition of NFTs and other digital assets. Her point is that many NFTs are not securities, but the SEC has not issued formal guidance to distinguish which activities related to NFTs may fall under the securities law.

In the absence of published rules, NFT creators and platforms are still affected by interpretation and potential enforcement based on how their assets are sold and promoted.

Peirce said additional clarity could also be achieved through future SEC rulemaking or legislative actions.