TechFlow News, March 17: According to The Block, SEC Commissioner Hester Peirce stated in a CNBC interview that the SEC welcomes proactive engagement from asset management firms exploring novel ETF structures and tokenized financial instruments. Peirce emphasized that the SEC is not a “value arbiter”; its role is to ensure that products provide compliant disclosures of risks—not to judge the inherent merits or drawbacks of investment products.
She also noted that the SEC has recently intensified its scrutiny of highly leveraged ETF structures, requiring issuers to demonstrate that their products comply with the securities law framework. In the tokenization space, Peirce revealed that SEC staff are examining a “narrowly tailored” innovation exemption proposal, designed to permit limited experimentation with tokenized securities within the existing regulatory framework while preserving investor protection mechanisms. Peirce added that as more companies seek regulatory guidance on tokenization initiatives, the SEC will continue maintaining close communication with the industry.
