In a recent interview, SEC Commissioner Hester Peirce shared her insights on the future of tokenized securities and real-world assets, stating that the market will ultimately determine the success of these new models.
Tokenized Securities Still Under SEC Rules
Despite changes in how assets are packaged and traded, Peirce emphasized that the rules remain unchanged. Tokenized securities are still considered securities, and issuers are required to clearly disclose asset characteristics and comply with access restrictions.
CITE_W_A: "It may be a security with different characteristics, and that’s something that needs to be conveyed to investors," she said.
SEC Won’t Pick Winners
Peirce also highlighted that the SEC will not be 'picking winners,' but rather will work with participants using different approaches.
CITE_W_A: "We’re looking forward to working with folks to try those different models out and see what the markets like," she added.
Tokenization Gains Traction, But Adoption is Slow
Tokenization is gaining significant attention from both fintech innovators and Wall Street giants. Currently, the most successful example is the stablecoin market, projected to hit $2 trillion by 2028. However, JP Morgan notes that adoption has only reached $25 billion, primarily driven by crypto firms, rather than major banks or publicly traded companies.
Thus, according to Hester Peirce, the future of crypto assets will not be shaped by regulators, but by the market itself, paving the way for innovation and new approaches.
