SEC commissioner Hester Peirce, also known as “Crypto Mom”, warned the issuers of fractionalized non-fungible tokens and NFT index baskets that they could accidentally be distributing investment products. Peirce urged NFT issuers to be cautious if they decide to “sell fractional interests” in NFTs or NFT baskets, by stating “You better be careful that you’re not creating something that’s an investment product — that is a security.”