SEC Commissioner Peirce: NFT royalty mechanism does not make tokens securities According to Cointelegraph, US SEC Commissioner Hester Peirce explicitly stated in a public speech that NFTs with creator royalty mechanisms typically do not fall under the category of securities. Peirce pointed out that the feature of NFTs allowing artists to profit from reselling is similar to the model of streaming platforms paying copyright to creators, and this distribution of profits does not constitute the "corporate profit sharing right" in the traditional definition of securities. Atlas Development Services Chief Legal Officer Oscar Franklin Tan added that some media outlets have misinterpreted Peirce's statement, emphasizing that the SEC has never considered creator royalties as a subject of securities regulation. He explained that when royalties only belong to the original creator, their nature is closer to "business income" rather than "investment income"; But if NFT design involves distributing royalty profits to multiple holders, it may trigger securities compliance issues.