Odaily Planet Daily reports that U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce said the regulator is open to companies exploring asset tokenization and novel trading product structures, and encourages relevant institutions to proactively engage with the SEC.
Peirce said in an interview with CNBC’s “The Exchange” that as the market matures, the SEC wants institutions developing innovative financial products—including companies launching tokenized financial instruments—to be able to communicate directly with regulators. “Most importantly, ‘come and talk to us about what you want to do.’ We want to work with the industry to give the market a chance to test whether these new products truly have demand.”
She noted that many asset management firms are currently exploring how to package crypto assets or blockchain-based securities into traditional investment vehicles, such as exchange-traded funds (ETFs).
Peirce also responded to the SEC’s recent focus on highly leveraged ETFs. She emphasized that the SEC is not a “value-judgment regulator” and does not determine whether a product is a good investment, but rather ensures it complies with relevant laws and provides full disclosure of risks.
She noted that existing regulations impose certain limits on fund leverage levels, but issuers may still propose alternative designs if they can demonstrate that the product structure complies with the securities law framework. As some institutions attempt to launch ETFs with leverage exceeding three times, regulatory attention in this area is increasing.