While speaking at Draper Goren Holm’s Security Token Summit yesterday, the commissioner, otherwise known as “Crypto Mom” warned the issuers of fractionalized NFTs products. According to her, they could unknowingly be issuing investment products. She said:
Away from NFTs, Peirce criticized the use of the Howey Test to ascertain whether or not a crypto asset is a security. The test was drawn from a landmark 1946 court case involving real estate contracts issued by the owner of a citrus grove to fund the expansion of the business. She opines that the same scenario cannot be applied in the modern-day cryptocurrency industry.
This may not be unrelated to Ripple’s ongoing battle with the SEC on charges that XRP is a security.
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Source: Cryptocurrency - investing.com
