US SEC To Consider Potential Tokenization Exemption For Companies
The US Securities and Exchange Commission (SEC) is considering a proposal allowing companies to engage in tokenization by issuing and trading securities using blockchain technology.
This consideration follows a recent statement from SEC Commissioner Hester Peirce, who has consistently advocated for clearer, more flexible crypto regulation.
In a recent post on X, Wu Blockchain shared that Commissioner Peirce revealed that the SEC is considering an exemption order for tokenization.
This exemption would provide companies with legal cover to use distributed ledger technology (DLT) for issuing, trading, and settling securities.
In a public statement, she emphasized the need for the US SEC to avoid setting rules that stifle innovation. This is particularly important, especially in cases where technology could improve efficiency in capital markets.
According to Peirce, the tokenization exemption could allow the use of trading systems explicitly built for securities.
She stressed that current regulations might discourage innovation and argued for a principle-based approach focused on investor protection and long-term value creation, rather than rigid procedural requirements.
