SEC’s Hester Peirce encourages firms exploring tokenization to ‘come in and talk to us’

SEC Commissioner Hester Peirce encouraged asset managers exploring tokenization and new exchange-traded product structures to engage directly with regulators, stating, "It really is a 'come in and talk to us' about what you're trying to do." She emphasized the SEC's desire to work with companies experimenting with blockchain-based instruments to see if the market wants their products. Peirce also addressed the scrutiny of highly leveraged exchange-traded funds (ETFs), clarifying that the SEC's role is not to judge products as good or bad, but to ensure they comply with statutory leverage limits and disclosure requirements. Furthermore, she noted increased discussions about tokenization, following recent remarks about SEC staff developing a "narrower" exemption for limited trading of certain tokenized securities, signaling the agency's intent to collaborate with the industry as technical and legal questions arise.

(Source：The Block)