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Crypto ‘Mom’ Hester Peirce Slams SEC for Stoner Cats Actions

SEC commissioner Hester Pierce has come out against her own agency for its heavy-handed approach to crypto enforcement, which she says is unjustified and is stifling innovation

In a rare move, two SEC Commissioners have publicly expressed disagreement with the agency’s recent enforcement actions concerning non-fungible tokens (NFTs) and the Stoner Cats project. Hester Peirce and Mark Uyeda argue that the SEC’s application of the Howey investment contract analysis to NFTs is overly broad and stifles creativity.

A Call for Clear Guidelines

The Commissioners emphasized the need for clear guidelines to help artists and creators understand how securities laws apply to NFTs. "Artists of all kinds have long struggled to support themselves, and NFTs offer a potentially viable way for them to monetize their talents," they said. They added that the mere involvement of money does not automatically transform NFTs into securities.