Hester Peirce, a U.S. SEC Commissioner often called “Crypto Mom” for her pro-innovation stance, announced the SEC is exploring a conditional exemption for tokenized securities on blockchain, aiming to modernize financial markets while ensuring investor protections through strict oversight.
Tokenized securities involve digitizing assets like stocks or bonds on a blockchain, enabling faster settlements and 24/7 trading; a 2024 McKinsey report highlights their potential to transform capital markets, with tokenized money market funds already surpassing $1 billion in value.
This move signals a shift in SEC policy, as Peirce’s once-fringe views on crypto gain traction, potentially unlocking mainstream adoption of blockchain in traditional finance, though regulatory hurdles like fraud prevention and capital requirements remain significant barriers.
