The U.S. Securities and Exchange Commission may be preparing to exempt certain NFT fundraising projects from securities regulations, which would reverse course from previous enforcement actions.
SEC Commissioner Hester Peirce, now co-leading the agency’s crypto task force with Acting Chair Mark Uyeda, suggested that NFTs could be the next digital asset to receive an exemption, similar to last week’s guidance on proof-of-work mining.
“We could do it on NFTs as well,” Peirce said Friday backstage at the SEC’s first crypto roundtable. She added that a clear framework would offer issuers practical guidance and “could be pretty helpful.”
The agency’s evolving stance marks a stark contrast from the tenure of former Chair Gary Gensler, who oversaw multiple lawsuits against NFT-backed projects. Among them was Stoner Cats, an animated series by actress Mila Kunis that raised $8 million through the sale of NFTs.
Holders were granted access to the series and other perks, while the tokens remained tradeable on secondary markets. Each transaction triggered a 2.5 percent royalty paid to the project team.
Flyfish Club, another project sued under Gensler’s administration, raised more than $14 million using NFTs to fund a members-only private restaurant. The tokens offered exclusive access and were designed with resale and royalty mechanisms similar to those used by Stoner Cats.
Peirce confirmed Friday that NFTs structured like Stoner Cats and Flyfish Club could fall outside the SEC’s securities definition under new guidance. However, she emphasized that not all NFTs would be exempt. “You could have an NFT that’s a tokenized security,” she said. “Obviously that’s not going to be carved out.”
The push for regulatory clarity follows the SEC’s latest statement on proof-of-work mining, declaring it does not meet the definition of a security. “The miner merely is engaging in an administrative or ministerial activity to secure the network,” the statement read, adding that rewards earned from mining are not derived from any third-party managerial efforts.
The agency’s recent moves come amid a broader shift in posture under the Trump administration. Since Gensler’s departure, the SEC has rolled back lawsuits and investigations into crypto firms, favoring clearer regulatory frameworks over enforcement-first strategies.
Peirce, a longtime crypto advocate, has publicly criticized the prior administration’s approach and now leads a task force tasked with untangling what she has called a “mess” in digital asset regulation.
Some members of Congress are pursuing legislative support to codify NFT exemptions. Lawmakers have proposed including language in crypto bills allowing NFT fundraising tied to artwork, merchandise, or memberships, aligning statutory law with the SEC’s potential guidance.
