SEC’s Hester Peirce on Tokenized Assets: Compliance First, But Markets Will “Pick Winners”

SEC Commissioner Hester Peirce emphasized that the future of tokenized securities and real-world assets will be determined by market forces rather than regulatory intervention. Speaking to Bloomberg, she noted that investors and businesses will ultimately decide which models succeed, with the SEC playing a supportive rather than directive role.

Peirce clarified that tokenized securities remain subject to existing SEC regulations, requiring issuers to disclose asset characteristics and comply with access restrictions. "It may be a security with different characteristics, and that’s something that needs to be conveyed to investors," she said.

The commissioner reiterated the SEC’s neutrality in market evolution, stating the agency is open to collaborating with innovators exploring diverse approaches. "We’re looking forward to working with folks to try those different models out and see what the markets like," Peirce added.

Despite growing traction, tokenization adoption faces hurdles. The technology’s potential to reshape asset packaging and trading is undeniable, but its progress remains measured as the market continues to evaluate viable frameworks.