SEC commissioner Hester Peirce is expecting growth in NFT use cases in 2022
December 30, 2021, 3:52PM EST
1 min read
SEC commissioner Hester Peirce says she's expecting an increase in the financialization of non-fungible tokens (NFTs) in 2022, and that means holders will have to keep an eye on the ways their activity could run into securities laws.
In an interview with CoinDesk's First Mover on Thursday, Peirce delivered her 2022 outlook. Peirce said she anticipates additional use cases for NFTs as people figure out how they can further extract value from the tokens. As those use cases expand ownership and governance rights, Peirce said holders should look to see how those uses might dovetail with securities laws.
"I think as people have learned, our definition of security is quite broad, and so people need to be thinking about potential places where NFTs might run into securities regulatory regime," she said.
Where those intersections might occur have yet to be determined, according to Peirce. However, she has already written on the potential for fractionalization of NFTs to run up against the SEC's mandate.
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Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.