A senior U.S. regulator is signaling a more open stance toward blockchain-based financial innovation. Hester Peirce, commissioner at the U.S. Securities and Exchange Commission, says companies developing tokenized financial products should engage directly with regulators as interest in blockchain-powered markets grows.
Speaking on The Exchange on CNBC, Peirce said firms experimenting with tokenization or new exchange-traded product structures are encouraged to discuss proposals with the SEC early in the process. Asset managers are increasingly exploring ways to wrap blockchain-based securities and crypto-linked assets inside traditional investment vehicles such as ETFs.
Could Tokenization Gain A Regulatory Path In The U.S.?
The commissioner’s remarks come as the SEC studies ways to allow controlled experimentation with tokenized securities. Peirce recently noted that agency staff are working on a narrow “innovation exemption” that could permit limited trading of certain blockchain-based instruments without abandoning existing investor protections.
Industry momentum is growing quickly. Financial firms argue that tokenized assets could modernize market infrastructure by enabling faster settlement and more transparent ownership records on distributed ledgers. At the same time, regulators insist these systems must still comply with disclosure requirements and securities law standards.
Peirce emphasized that the SEC’s role is not to judge whether financial products are inherently good or bad investments. Instead, the agency focuses on whether issuers properly disclose risks and operate within statutory limits.
“It really is a ‘come in and talk to us’ about what you're trying to do,” she said. “We want to work with you toward being able to experiment to see whether the market wants your products.”
The conversation also extends beyond tokenization. The SEC is examining leveraged exchange-traded funds as issuers test structures that go beyond the triple-leveraged products already offered by firms such as ProShares. Existing rules limit the amount of leverage funds can use, though sponsors can propose alternative structures if they demonstrate compliance with securities laws.
For blockchain advocates, the regulatory tone matters almost as much as the rules themselves. Engagement between regulators and financial institutions could determine whether tokenized assets remain a niche experiment or become a core part of capital markets.
The next catalyst may arrive when the SEC clarifies how its proposed innovation exemption would work in practice, potentially opening the door for the first wave of regulated tokenized securities trading in the United States.
