PANews reported on May 21 that according to Cointelegraph, Hester Peirce, a member of the U.S. Securities and Exchange Commission (SEC), made it clear in a public speech that NFTs with a creator royalty mechanism are generally not securities. Peirce pointed out that the feature of NFTs that allows artists to profit from resales is similar to the model of streaming platforms paying creators for copyrights, and this distribution of income does not constitute the "corporate profit sharing right" in the traditional definition of securities.

Oscar Franklin Tan, chief legal officer of Atlas Development Services, added that some media outlets have misinterpreted Peirce's statement, emphasizing that the SEC has never considered creator royalties as securities regulation. He explained that when royalties belong only to the original creator, their nature is closer to "business income" rather than "investment income"; but if the NFT design involves distributing royalty profits to multiple holders, it may trigger securities compliance issues.