According to Deep Tide TechFlow, on May 21, SEC Commissioner Hester Peirce stated that most NFTs, including tokens with creator royalty mechanisms, may not fall under the jurisdiction of federal securities laws.
Peirce pointed out that NFTs that allow artists to earn resale royalties are not automatically classified as securities. She likened this model to the compensation mechanisms of streaming platforms for musicians and filmmakers.
Oscar Franklin Tan, Chief Legal Officer of Enjin core contributor Atlas Development Services, stated that U.S. securities law primarily focuses on investment regulation rather than creator compensation, and the SEC has never prohibited artists from receiving royalties from secondary sales of their works via blockchain protocols.