As tokenization continues to gain momentum among Wall Street giants and crypto-native startups, SEC Commissioner Hester Peirce has urged that it should be the market – not regulators – that decides which models thrive.
Her view is that innovation should be encouraged, but without ignoring the obligations already written into U.S. securities law.
In her latest comments, Peirce made it clear that any security moved onto a blockchain keeps its legal identity. Whether it’s a stock, bond, or another investment instrument, putting it in token form doesn’t exempt it from disclosure requirements or investor protections. She warned that products like tokenized receipts or security-based swaps can carry extra risks that must be clearly communicated to buyers.
A Longstanding Position on Tokenization
Peirce’s message isn’t new. In July, she released a statement titled “Enchanting, but Not Magical,” reminding the industry that blockchain technology changes how assets are delivered, not what they are in the eyes of the law. She criticized attempts to use tokenization to skirt compliance, stressing that regulators expect full transparency.
Her approach favors working directly with companies experimenting in the space, suggesting that regulatory sandboxes and active engagement could help balance innovation with safeguards for investors.
Using Current Rules to Oversee New Tech
Leading the SEC’s Crypto Task Force, Peirce said the commission won’t wait for fresh legislation to address tokenized assets. Instead, it will apply its existing framework to offer guidance and adapt oversight where needed.
These remarks come as the U.S. financial industry debates stablecoin legislation and explores blockchain-based settlement for traditional assets. Proponents say tokenization could speed up transactions and broaden access to markets, but the lack of regulatory clarity has slowed progress.
For Peirce, the path forward is clear: let competition determine which tokenization approaches work, but ensure every participant plays by the rules already on the books.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/blockchain-wont-change-securities-laws-according-to-secs-hester-peirce/