Odaily Planet Daily News - Hester Peirce, a commissioner of the U.S. Securities and Exchange Commission (SEC), 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 characteristic of NFTs allowing artists to profit from resale is similar to the model of streaming platforms paying creators for copyright, and this revenue distribution does not constitute "profit-sharing rights" as defined in traditional securities. Oscar Franklin Tan, Chief Legal Officer at Atlas Development Services, added that some media have misinterpreted Peirce's statements, emphasizing that the SEC has never considered creator royalties as objects of securities regulation. He explained that when royalties are solely attributed to the original creator, their nature is closer to "business income" rather than "investment income"; however, if the NFT design involves distributing royalty profits to multiple holders, it may trigger securities compliance issues. (Cointelegraph)

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