SEC Commissioner Calls for Simplified Disclosure Rules and Highlights Regulation of Tokenized Securities

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SEC Commissioner Peirce has called for simplified disclosure rules, noting that clearer information is harder to obtain. She also addressed the securities versus commodities debate, emphasizing the need for clarity around tokenized securities. SEC staff are advancing a potential "innovation exemption" to test tokenized securities under current law. Peirce questioned whether additional disclosure is necessary, highlighting blockchain’s ability to accelerate settlement and impact liquidity and crypto markets. Earlier, SEC Chair Paul Atkins called tokenization a major financial innovation. In December 2025, the SEC issued a no-action letter to DTCC regarding blockchain-based security tokenization.

Odaily Planet Daily reports: It is harder to obtain clear information; it is recommended that the SEC consider streamlining relevant regulations.

Peirce also addressed issues related to tokenized securities, stating that SEC staff are advancing a potential "innovation exemption" mechanism to allow limited trials of tokenized securities within the existing securities law framework. She questioned whether tokenized securities require additional disclosure and intermediary requirements, noting that blockchain systems can enable faster settlement and, in some cases, bypass traditional intermediaries to complete transactions.

Previously, SEC Chairman Paul Atkins stated that tokenization should be viewed as a significant financial innovation that regulators should encourage. In December last year, the SEC issued a no-action letter to DTCC, permitting it to explore blockchain-based securities tokenization services.

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