SEC Commissioner Hester Peirce: We welcome communication between institutions exploring tokenization and proactive regulatory bodies.

According to Odaily Planet Daily, U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce stated that the regulator is open to companies exploring asset tokenization and new exchange-traded product structures, and encourages such companies to proactively communicate with the SEC. In an interview with CNBC's "The Exchange," Peirce said that as the market matures, the SEC hopes that companies developing innovative financial products—including those launching tokenized financial instruments—will communicate directly with the regulator. "The most important thing is 'Come and talk to us about what you want to do.' We want to work with the industry to give the market the opportunity to test whether there is real demand for these new products," she said. She pointed out that many asset management firms are currently exploring how to package crypto assets or blockchain securities into traditional investment vehicles, such as exchange-traded funds (ETFs). Peirce also addressed the SEC's recent focus on highly leveraged ETFs. She emphasized that the SEC is not a "value-judgment regulator" and does not decide whether a product is a good investment, but rather ensures that it complies with relevant laws and regulations and fully discloses risks. She stated that existing regulations impose certain limits on fund leverage levels, but if the issuer can demonstrate that the product structure complies with the securities law framework, different design options may still be proposed. As some institutions attempt to launch ETF products with leverage exceeding three times, regulators are paying increasing attention to this area.