SEC Commissioner Calls for Simplified Disclosure Rules, Focuses on Tokenized Securities Regulation

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Odaily Planet Daily reports that it is becoming more difficult to obtain clear information, and recommends that the SEC consider streamlining related regulations.

Peirce also mentioned issues related to tokenized securities, stating that SEC staff are working on a potential “innovation exemption” mechanism that would allow limited experimentation with tokenized securities within the existing securities law framework. She also questioned whether tokenized securities require additional disclosures and intermediary requirements, noting that blockchain systems can enable faster settlement speeds and, in some cases, bypass traditional intermediaries to complete transactions.

Previously, SEC Chair Paul Atkins stated that tokenization should be viewed as a major financial innovation that regulators should encourage. The SEC sent a no-action letter to DTCC in December last year, allowing it to explore blockchain-based securities tokenization services.

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