SEC Commissioner: Will Carefully Study "Innovation Exemption" for Tokenized Securities, Focus on Key Issues Such as Information Disclosure

Gate News: On March 15, U.S. Securities and Exchange Commission Commissioner Hester M. Peirce announced that a “regulatory innovation exemption” for tokenized securities has been initiated, allowing limited trading and technical testing of certain tokenized securities. This exemption will be more cautious than industry-recommended “full exemption.” Hester M. Peirce believes that it should be explored whether different types of security tokenization models can be tested under the innovation exemption framework, and whether issuers should be required to obtain third-party approval to issue tokenized versions of their shares, in order to promote technological innovation while avoiding regulatory arbitrage and maintaining core investor protection mechanisms. She also emphasized that regulators should not overreach in private capital allocation. Currently, the SEC is evaluating several key issues, including whether the existing disclosure regime sufficiently covers ownership structures of tokenized securities, the disclosure obligations of brokers and clearing agencies in the issuance of tokenized securities, the compatibility of atomic settlement with current T+1 settlement rules, and the applicability of regulatory authority under a no-intermediary or new intermediary structure.