In a space that’s spent years navigating ambiguity, SEC Commissioner Hester Peirce’s recent statement cuts through with rare clarity: NFTs with creator royalties are not securities.

This isn’t just a footnote. It’s a long-overdue course correction. For the better part of two years, NFT platforms operated under the looming threat that smart contract-enabled royalties—arguably the core innovation of NFTs—might be enough to trigger federal securities laws. The chill that followed was felt across the entire ecosystem: platform volume collapsed, creators pulled back, and U.S.-based innovation got boxed out.

Now, that cloud is starting to lift.

From Lawsuits to Signals

The SEC's decision to drop its investigation into OpenSea in February 2025 was the first major sign of a policy shift. After issuing a Wells Notice in 2023 accusing the platform of operating as an unregistered securities exchange, the SEC quietly walked it back this year—without charges.

OpenSea rebounded almost instantly, regaining 71% of the NFT market share. But the real domino fell this week, when Peirce publicly stated that NFTs—including those with resale royalties—do not grant “the kinds of profits traditionally associated with securities.”

Translation: programmable royalties ≠ investor dividends.

This aligns with what creators and technologists have been arguing all along. An NFT that gives an artist 5% each time their work is resold isn’t an investment contract—it’s just fairer economics built into the code.

The 2021 Bull Market Was an NFT Bull Market

Let’s be honest about something: NFTs were the spark that ignited the 2021 bull run. Not DeFi, not Layer 2s—NFTs. They were cultural, visual, memetic, and accessible. They brought artists, musicians, fashion designers, and millions of first-time crypto users into the space. And they proved that crypto wasn't just finance—it could be fun, expressive, and communal.

That momentum slowed not because the appetite was gone, but because regulatory fog made it risky to build. Platforms pulled features. Teams shelved roadmap items. The best creators turned elsewhere.

With Peirce’s statement and the OpenSea investigation dropped, the category can breathe again. It’s not a green light for everything—but it’s not red anymore either.

This Is Bigger Than JPEGs

This is about programmable art. About economic rails baked into media formats. About a new way for creators to earn without intermediaries.

If NFTs with royalties are no longer in regulatory limbo, it opens the door for more advanced models: unlockable content, gamified licensing, streaming micropayments, and revenue-sharing between communities and creators. We can start thinking in terms of apps, not just marketplaces.

And this shift isn’t happening in a vacuum. Apple, under legal pressure, is no longer able to force all app payments through its 30% toll booth. That means NFT platforms, creator tools, and crypto-native apps can finally enable real digital ownership—and real secondary royalties—without giving away a third of the value to Cupertino.

NFTs, uncoupled from security law and App Store tax, suddenly become what they were always meant to be: portable, programmable, and economically aligned with the people who make the internet interesting.

What Comes Next

Skepticism is warranted. The SEC is still the SEC, and Peirce is one voice in a shifting landscape. But voices matter. Especially when they come with a mandate like the Crypto Task Force, and especially when they’re paired with action—like dropping a case against the biggest NFT marketplace in the world.

If this trend holds, we may finally be entering the second era of NFTs: not a bubble, but an infrastructure layer. One where digital media has native economics, creators have on-chain leverage, and apps can actually ship without dodging lawsuits.

It took a few pizzas for Bitcoin to feel real. Maybe it just took a few royalties for NFTs to finally find their footing.