Crypto Mom Peirce: Stablecoins, meme coins, and NFTs are not securities, and the "safe harbor" compliance transition plan will be implemented.

Hester Peirce, a member of the SEC (SEC) and nicknamed "Crypto Mom", made it clear at the SEC Speaks Annual Meeting on May 19 that most crypto assets such as stablecoins, meme coins and NFTs are not securities in nature. Peirce has also proposed a safe harbor (Safe Harbor) to provide a compliance period for new crypto projects, allowing players to breathe to develop product functionality and decentralization without having to be illegally issued securities in the first place.

New SEC Chairman Atkins strongly supports, and the crypto group is taking active action.

Currently, under the support of the new SEC Chairman Paul Atkins, the "crypto group" led by Peirce has initiated the following actions:

Four round tables were held, the fifth of which has been scheduled for June

Received over 100 written opinions from the industry.

Conducted over a hundred meetings with industry representatives and scholars.

Gradually releasing legal guidelines covering mining and digital asset custody.

Revoke outdated policies

Assist Congress in drafting legislation and align with the White House's encryption policy direction.

Most crypto assets are not securities, including stablecoins, meme coins, and NFTs.

Peirce clearly stated:

Most of the cryptocurrencies in the market do not actually constitute securities.

She also elaborates on which coins belong to "non-securities":

Stablecoin (Stablecoins): primarily used as a payment tool, not involving investment returns.

Meme Coin (Memecoins): Value is composed of cultural and community consensus, not by the operation of a company to make money, not economically dependent

NFT: Creators can receive resale royalties through smart contracts, but buyers do not enjoy revenue sharing with creators.

Functional Tokens ( Utility Tokens ): Used solely as tools for utilizing protocols or applications, not relying on third parties for profit.

The "safe harbor" assists businesses in transitioning safely, no longer making it illegal as soon as they go on-chain.

Peirce also reminds us that assuming a certain encryption project:

Pre-selling tokens before the protocol is launched and decentralized, while also promising future functions and developments, may likely constitute an "investment contract," potentially violating securities laws.

In response to the above issues, she proposed a safe harbor mechanism (Safe Harbor) to provide operators with a secure transition:

Give the crypto project a buffer period: for example, three years.

During the grace period, as long as the information disclosure obligations are met: such as project progress, team structure, fund usage, etc.

can temporarily exempt from the cumbersome registration procedures in the Securities Act

Allow operators a buffer period to enable functionality launch and Decentralization, avoiding immediate penalties.

Even if the early issuance involves investment contracts, as long as the tokens are launched and freely traded in the market, subsequent transfers are no longer subject to securities law.

The SEC will gradually issue clear guidelines on NFT, Staking, and airdrops.

Peirce emphasized that clear guidelines will be provided for the subsequent issuance of encryption assets and revenue mechanisms, including:

Does the income from creator NFTs constitute securities income?

Is an airdrop fundraising?

Does participation in the staking ( involve the Howey Test, meaning do investors expect to make money through the efforts of others?

Tokenized securities coexist with non-securities, and the market needs clear rules to maintain order.

Peirce pointed out that traditional assets like stocks and bonds, even when tokenized and put on the chain, still belong to securities and must still be subject to regulation.

But the market also has a large number of non-security type encryption assets, such as:

Functional Tokens )Utility Tokens(

stablecoin )Stablecoins(

community coin

The two types will inevitably coexist in the same market, and the SEC should establish clear and predictable guidelines for this "dual-track system", rather than a one-size-fits-all crackdown.

)Don't let crypto startups get stuck in the securities definition! Crypto Mom Peirce: Establishing a clear and lasting mechanism is key to crypto regulation(

This article by crypto mom Peirce: stablecoins, meme coins, and NFTs are not securities, and the "safe harbor" compliance transition plan will be implemented. First appeared in Chain News ABMedia.