{"id":39643,"date":"2021-03-26T15:39:52","date_gmt":"2021-03-26T13:39:52","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=39643"},"modified":"2025-08-30T10:41:31","modified_gmt":"2025-08-30T07:41:31","slug":"sec-commissioner-peirce-nft-sales-may-violate-the-law","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/sec-commissioner-peirce-nft-sales-may-violate-the-law\/","title":{"rendered":"SEC Commissioner Peirce: NFT sales may violate the law"},"content":{"rendered":"<p>Fractional non-fungible tokens (NFTs) and their index baskets can be construed as investment contracts under US securities laws, SEC Commissioner Hester Peirce said.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;The concept behind NFTs is that tokens are non-fungible. As a result, they are difficult to classify as securities. But the situation is not so clear-cut for those who create fractional NFTs. This also applies to those selling index baskets of non-fungible tokens,&#8221; she said.<\/em><\/p>\n<\/blockquote>\n<blockquote class=\"wp-embedded-content\" data-secret=\"KCV1CMd5n5\"><p><a href=\"https:\/\/forklog.com\/en\/news\/how-to-issue-an-nft-and-sell-a-tweet-a-beginners-guide\">How to issue an NFT and sell a tweet: a beginner&#8217;s guide<\/a><\/p><\/blockquote>\n<p><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; visibility: hidden;\" title=\"\u201cHow to issue an NFT and sell a tweet: a beginner's guide\u201d \u2014 ForkLog\" src=\"https:\/\/forklog.com\/exclusive\/kak-vypustit-nft-i-prodat-tvit-rukovodstvo-dlya-nachinayushhih\/embed#?secret=W4Fofela6G#?secret=KCV1CMd5n5\" data-secret=\"KCV1CMd5n5\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/p>\n<blockquote class=\"wp-embedded-content\" data-secret=\"TtOGby38x2\"><p><a href=\"https:\/\/forklog.com\/en\/news\/nft-as-a-new-class-of-virtual-assets-prospects-part-i\">NFT as a new class of virtual assets: prospects (part one)<\/a><\/p><\/blockquote>\n<p><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; visibility: hidden;\" title=\"\u201cNFT as a new class of virtual assets: prospects (part one)\u201d \u2014 ForkLog\" src=\"https:\/\/forklog.com\/exclusive\/nft-kak-novyj-klass-virtualnyh-aktivov-perspektivy-chast-pervaya\/embed#?secret=Mr1POlJDpN#?secret=TtOGby38x2\" data-secret=\"TtOGby38x2\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/p>\n<p>In her remarks, Peirce again criticized the Howey test, which \u201cdoes not work very well\u201d for the cryptocurrency industry.<\/p>\n<p>She noted that, in its current interpretation dating to 1946, fruit trees would also have to be considered investment contracts.<\/p>\n<p><a href=\"https:\/\/www.investopedia.com\/terms\/h\/howey-test.asp\" target=\"_blank\" rel=\"noreferrer noopener\">The Howey Test<\/a> became used as a precedent in a court case of that era. It concerned real estate contracts issued by the owner of a citrus grove to finance business expansion.<\/p>\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\">\n<div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"Senator Lummis &#038; SEC Commissioner Peirce: Security token regulation in the US | Fireside chats\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/dkunmN8wbKE?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div>\n<p><\/iframe><\/p>\n<p>Peirce expressed hope of advancing her plan to provide regulatory sandboxes for blockchain startups under the new SEC chair <a href=\"https:\/\/forklog.com\/en\/news\/u-s-senate-banking-committee-approves-gary-gensler-nomination-as-sec-chair\">Gary Gensler<\/a>.<\/p>\n<p>In August, the US Senate <a href=\"https:\/\/forklog.com\/en\/news\/crypto-mom-hester-peirce-named-sec-commissioner-through-2025\">approved<\/a> Peirce as a special appointee to the SEC for a second term through June 5, 2025.<\/p>\n<p>Prior to that, she criticized her colleagues\u2019 actions regarding the Telegram Open Network token sale.<\/p>\n<p>Earlier, ForkLog published <a href=\"https:\/\/forklog.com\/en\/news\/should-nft-trades-be-taxed-a-comparison-of-the-united-states-russia-and-ukraine\">a piece<\/a> focusing on the taxation of NFT-related deals.<\/p>\n<p>Follow ForkLog news on <a href=\"https:\/\/twitter.com\/ForkLog\" target=\"_blank\" rel=\"nofollow noopener\">Twitter<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Fractional non-fungible tokens (NFTs) and their baskets can be treated as investment contracts under US securities laws, according to SEC Commissioner Hester Peirce.<\/p>\n","protected":false},"author":1,"featured_media":39644,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1311,1213,36],"class_list":["post-39643","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-hester-peirce","tag-nft","tag-regulation"],"aioseo_notices":[],"amp_enabled":true,"views":"23","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/39643","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=39643"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/39643\/revisions"}],"predecessor-version":[{"id":39645,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/39643\/revisions\/39645"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/39644"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=39643"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=39643"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=39643"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}