Peirce Pushes for Innovation Exemption in March 12 Speech
SEC Commissioner Hester Peirce argued for a significant shift in U.S. regulatory policy on March 12, 2026, calling for simpler corporate disclosures and an "innovation exemption" for tokenized securities. In a speech to the SEC's Investor Advisory Committee, Peirce warned that overly prescriptive rules can distort capital flows and that complex disclosures often obscure key information from investors.
Peirce, a long-time advocate for clearer crypto rules, questioned the need for traditional intermediaries and disclosure requirements in blockchain-based systems, which can enable faster and more direct settlement. Her proposal aims to create a sandbox environment where firms can experiment with tokenizing securities under regulatory supervision.
Investor Committee Backs Tokenization with Key Safeguards
The Commissioner's call is reinforced by formal recommendations from the SEC's own Investor Advisory Committee. The group voted to support a policy for tokenized securities, advising the agency to create narrow exemptions for blockchain-based stock trading. However, the committee stipulated that any such framework must include mandatory disclosures, routine outside supervision, and a requirement to ensure investors receive the best terms for their orders.
This internal support aligns with recent SEC actions, including a December no-action letter issued to the Depository Trust & Clearing Corporation (DTCC). The letter permitted the market infrastructure giant to explore a blockchain-based tokenization service, signaling a tangible step toward integrating digital assets into traditional finance. SEC Chair Paul Atkins has also publicly stated he views tokenization as a major financial "innovation" that regulators should encourage.
U.S. Regulators Coordinate to Build Clearer Crypto Framework
These developments are part of a broader, more coordinated push to establish a coherent digital asset framework in the United States. The SEC and the Commodity Futures Trading Commission (CFTC) recently announced a "Joint Harmonization Initiative" to align their rules, reduce regulatory overlap, and improve cross-market surveillance. The collaboration explicitly aims to develop a "fit-for-purpose" regulatory framework for crypto assets.
This effort to bring clarity contrasts with years of legal uncertainty that has pushed some innovation offshore, as regions like the European Union implemented comprehensive frameworks like MiCA. By working on multiple fronts—from token classification proposals to inter-agency agreements—U.S. regulators are signaling a move away from piecemeal enforcement and toward building a stable foundation for the digital asset market.
