SEC Commissioner Hester Peirce has called for a simplification of disclosure rules and cautioned against excessive regulatory micromanagement as discussions around tokenized securities intensify. According to NS3.AI, Peirce highlighted that SEC staff are currently exploring a potential innovation exemption. This exemption could permit limited experiments with tokenized securities while the agency evaluates the application of existing securities laws. Her comments come in the wake of the SEC's no-action letter issued to the Depository Trust & Clearing Corporation (DTCC) in December, which pertained to a blockchain-based tokenization service for securities.