SEC Leadership Suggests Crypto Startups Should Be Allowed to Raise Money With NFTs
The U.S. Securities and Exchange Commission (SEC) is considering an exemption for NFT fundraising, potentially allowing crypto startups to legally use non-fungible tokens (NFTs) to raise capital. SEC Crypto Task Force lead Hester Peirce stated on Friday that projects like Stoner Cats and Flyfish Club—which raised millions through NFT sales—should not be subject to securities regulations.
This potential regulatory shift could open new fundraising opportunities for crypto entrepreneurs while providing clearer guidelines for NFT issuers.
SEC’s Changing Stance on NFTs as Securities
Speaking backstage at the SEC’s first-ever crypto roundtable, Peirce hinted that NFTs could soon receive regulatory clarity, similar to the SEC’s recent statement that proof-of-work crypto mining does not classify as a security.
“If we could provide some kind of framework or some kind of markers for [NFT issuers] to look to, I think it could be pretty helpful,” Peirce said.
Such a statement could differentiate NFTs tied to digital art, memberships, or perks from those functioning as traditional securities.
How NFT Fundraising Works: The Case of Stoner Cats and Flyfish Club
NFTs, or non-fungible tokens, exist on blockchain networks such as Ethereum and Solana. They have been widely used to fund creative projects and businesses.
Stoner Cats NFT Case
- Animated series produced by Mila Kunis.
- Raised $8 million via NFT sales to fund production.
- NFT holders gained exclusive access to episodes.
- NFTs were resold on secondary markets, with 2.5% royalties going to the creators.
Flyfish Club NFT Case
- Private restaurant project that raised $14 million via NFT sales.
- NFT holders received exclusive membership to the restaurant.
- Similar royalty model on secondary sales.
Both projects were previously sued by the SEC under former SEC chair Gary Gensler, but Peirce’s recent comments suggest that similar NFT fundraising methods may soon become legal.
What This Means for Crypto Startups and NFT Issuers
If the SEC officially recognizes NFT fundraising as legal, it would be a major win for crypto entrepreneurs. This could lead to:
✅ More NFT-based fundraising opportunities for startups.
✅ Clearer regulatory guidelines for NFT projects.
✅ Growth in NFT adoption for funding creative and tech ventures.
✅ Stronger legal protection for businesses using NFT membership models.
However, not all NFTs would be exempt. Peirce clarified that NFTs structured as tokenized securities would still fall under SEC regulations.
Congress May Also Support NFT Fundraising
Lawmakers are also considering new crypto legislation that would explicitly legalize NFT fundraising. This could provide additional legal protections for NFT-based membership programs, merchandise sales, and digital art projects.
As the SEC re-evaluates its stance on NFTs, crypto startups and NFT projects may soon have a legal pathway to raise funds without facing securities law violations. If these changes move forward, NFTs could become a mainstream fundraising tool for businesses, artists, and creators.
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