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SEC’s ‘Crypto Mom’ warns selling fractionalized NFTs could break the law

Published 03/25/2021, 10:28 PM
Updated 03/26/2021, 12:00 AM
SEC’s ‘Crypto Mom’ warns selling fractionalized NFTs could break the law

Speaking at Draper Goren Holm’s Security Token Summit on March 25, SEC commissioner Hester Peirce, also known as “Crypto Mom” warned the issuers of fractionalized non-fungible tokens and NFT index baskets that they could inadvertently be distributing investment products.

While Peirce stated that “the whole concept of an NFT is supposed to be non-fungible” — meaning that “in general, it’s less likely to be a security” — she noted that “people are being very creative in the type of NFTs they are putting out there.”

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