Hester Peirce, a commissioner of the U.S. Securities and Exchange Commission (SEC), stated that regulators should avoid excessive intervention in the market and consider simplifying disclosure requirements as discussions around tokenized securities heat up.
Peirce referenced the 18th-century economist Adam Smith, widely regarded as the father of modern economics, noting that regulators should exercise restraint when shaping market outcomes.
She indicated that publicly traded companies often spend too much time preparing mandatory disclosure information, which can obscure rather than clarify the information available to investors, and thus the SEC should consider simplifying the relevant rules.
While her remarks touched on broader regulatory issues, Peirce also mentioned the increasingly intense debate surrounding tokenized securities and blockchain-based financial infrastructure.
Tokenization Gains Attention at the SEC
This letter effectively indicates that if the DTCC continues certain tokenization-related activities, the regulatory body will not recommend enforcement actions, thereby opening the door for the company to develop infrastructure supporting blockchain settlement for traditional securities.
