SEC Open to Dialogue on Tokenized Assets, Commissioner Peirce Says

SEC Commissioner Hester Peirce signaled the regulator's willingness to engage with industry players exploring tokenization of traditional securities. Speaking at Singapore's Digital Assets Data Summit, Peirce emphasized the need to understand how blockchain-based tokens interact with conventional security instruments.

"We are willing to work with people who want to tokenize," Peirce stated, urging market participants to initiate regulatory discussions. The commissioner highlighted tokenization's unique position among crypto innovations, alongside stablecoins, for delivering tangible financial infrastructure improvements.

Financial institutions globally are adopting tokenization to enhance liquidity and operational efficiency. Peirce noted the complexity lies in reconciling multiple representations of the same asset—paper certificates, electronic records, and blockchain tokens—calling for nuanced regulatory approaches tailored to different tokenization models.