SEC Commissioner Peirce Urges Asset Managers to Engage Early on Tokenization Plans

U.S. SEC Commissioner Hester Peirce said regulators are open to early discussions with asset managers exploring tokenization of financial products, The Block reports via ChainCatcher citing a CNBC interview. She explained the SEC works with firms piloting new instruments, including tokenized products, to assess market acceptance, stressing the agency enforces legal boundaries and disclosure rules rather than judging product quality. Peirce noted more firms have approached the SEC about tokenization plans as views on blockchain technology evolved, adding that staff are reviewing a narrower innovation exemption to permit limited experimentation with certain tokenized securities within the current framework while maintaining investor protections. She said legal, operational and technical issues are likely to arise as these models are tested, but regulators hope to collaborate with the industry to resolve them.