SEC Commissioner Peirce Emphasizes Importance of Disclosing Tokenized Assets.

SEC Commissioner Hester Peirce emphasizes that market forces will determine the success of tokenizing securities and real-world assets. She notes that companies must properly disclose the nature of assets being tokenized, as it may be a security with different characteristics. Peirce suggests that companies should follow proper disclosure guidelines to avoid regulatory issues.

SEC Commissioner Hester Peirce has underscored the pivotal role of market forces in determining the success of tokenizing securities and real-world assets. In interviews with Bloomberg Television and other platforms, Peirce emphasized that the market will ultimately decide which forms of tokenization will thrive [1].

Peirce also stressed the importance of proper disclosure for companies engaging in tokenization. She noted that the nature of assets being tokenized may be a security with different characteristics, and it is crucial for companies to clearly convey this information to investors [2].

The commissioner’s remarks come as the tokenization market continues to evolve, with companies like Robinhood Markets Inc. pushing for broader adoption [3]. However, concerns remain about the potential for regulatory arbitrage if clear rules are not established [4].

Peirce has also proposed a cross-border regulatory sandbox to facilitate innovation in tokenized assets. The initiative, which aims to reduce barriers while protecting investors, would cover digital securities, real-world assets (RWAs), stablecoins, and DeFi protocols [5].

Overall, Peirce’s stance highlights the need for a balanced approach that allows for innovation while ensuring investor protection and regulatory clarity.

References:
[1] https://finance.yahoo.com/video/tokenization-still-security-sec-commissioner-182224179.html
[2] https://www.bloomberg.com/news/articles/2025-08-12/sec-s-peirce-says-market-will-sort-out-winners-in-tokenization
[3] https://coinedition.com/sec-commissioner-proposes-us-uk-crypto-sandbox-for-tokenized-assets-innovation/
[4] https://www.morganlewis.com/pubs/2025/08/securities-enforcement-roundup-july-2025