Svmuu News: SEC Commissioner Hester Peirce stated in a recent speech that the current securities disclosure rules are overly complex, making it harder for investors to obtain clear information, and suggested that the SEC consider streamlining the relevant rules.
Peirce also addressed issues related to tokenized securities, stating that SEC staff are advancing a potential "innovation exemption" mechanism that would allow limited experimentation with tokenized securities within the existing securities law framework. She also raised questions about whether tokenized securities require additional disclosure and intermediary requirements, noting that blockchain systems can enable faster settlement speeds and, in some cases, bypass traditional intermediaries to complete transactions.
Previously, former SEC Chairman Paul Atkins stated that tokenization should be viewed as a significant financial innovation that regulators should encourage. The SEC issued a no-action letter to DTCC in December last year, allowing it to explore blockchain-based securities tokenization services.