Hester Peerus, Commissioner, United States Securities and Exchange Commission (SEC), stated that several non-fangbal tokens (NFTS), including the creator, consist of mechanisms to pay royalty, possibly fall out of the scope of federal securities laws.
In a recent speech, Peerce Said NFTs that allow artists to earn resale revenue do not automatically qualify as securities. Unlike shares, NFT programs are qualified assets that distribute income to developers or artists. The SEC official said how streaming platforms make up for musicians and filmmakers.
“As a streaming platforms pay royalty to the producer of a song or video, every time a user plays it, an NFT can enable artists to benefit from praise in their work value after their initial sales,” said Pyrus.
Peerce said that this facility does not provide any right or interest to NFT owners in “traditionally” connected to securities “in any commercial enterprise or profit.
SEC never banned NFT royalty
Oscar Franklin Tan, Chief Legal Officer of the Engson Core contributor Atlas Development Services, told Cointelagraph that the recent comments of Peerus on NFTS and manufacturer royalty have been widely misunderstood.
Peerce had clarified that NFTs who send resale royalty to artists, not necessarily securities, a visual tan says that there is legally sound, but some media reports have been incorrectly.
“So Hester Peerus stated that an NFT that sends a royalty back to the manufacturer is not a safety. It’s not right, but the way some media reported that it is completely out of reference,” Tan told the coinlagraph. “The actual reference is that it is not controversial, and was never considered security.”
The lawyer said that the US securities law focuses on regulating investments and not compensating the creators for their work.
“Artist or producer is not an investor, NFT does not have a passive third party,” he said, given that royalty payment is not considered investment income.
Instead, Tan told cointelegraph that this type of earning is “in line with commercial income, which SEC does not regulate. He said:
“SEC never banned contracts, where artists and creators get royalty from secondary sales, not a paper contract or royalty from blockchain protocol.”
Tan reported that the legal difference becomes more complicated when NFTS promises the original manufacturer to share benefits to many holders with royalty.
Tan urged regulators and market participants to implement traditional legal arguments for new blockchain technologies. “Ask yourself, if it was done by pen and paper instead of blockchain, would there be still a regulatory issue?” He said. “If no one, slow.”
Connected: SEC charged Unicin Crypto platform on $ 100 million fraud
Call on Opensea Sec exists NFT Marketplace from the oversight
While NFT royalty may not be a controversial SEC issue, NFT Marketplace is a different case. In August 2024, NFT Trading Platform Openia Wells notice received From SEC, alleging that NFTs trading at marketplace can qualify as unregistered securities.
On 22 February, Openia CEO Dewin Finner announced that SEC is with Officially stopped investigation In the stage. The executive said that it was a win for the industry.
After the conclusion of SEC investigation, Openia’s lawyer Gave a letter to PeerceWhich leads the SEC’s Crypto Task Force. Opensea General Council Edel Faure and Deputy General Council Laura Brookover said in a letter of April 9 that NFT Marketplace is not as brokers as brokers under US securities laws.
Lawyers said that marketplace does not execute transactions or act as middlemen. The lawyers urged the SEC that “it was clearly stated that NFT marketplaces like Opensia do not qualify as exchanges under the laws of federal securities.”
magazine: NBA star Triston Thompson remembered $ 32B in Bitcoin by contracting $ 82M in cash
