SEC's Hester Peirce Highlights Tokenization as Key Priority and Advocates for Financial Privacy Amid Regulatory Delays

SEC Commissioner Hester Peirce has declared that tokenization is now a "huge focus" for the agency, emphasizing how this technology is reshaping digital assets and market infrastructure. Speaking at the DC Privacy Summit, Peirce underscored the need to balance financial privacy with regulatory oversight, particularly as a ongoing federal government shutdown, now in its second week, has delayed critical decisions, including approvals for multiple crypto exchange-traded fund applications.

Peirce confirmed that "pretty much nothing is getting done" due to the shutdown, which has stalled regulatory actions like Nasdaq's pending proposal to trade tokenized securities. She highlighted the SEC's evolving approach under initiatives such as the Crypto Task Force and "Project Crypto," aimed at refining digital asset regulation. Additionally, Peirce called on policymakers to uphold Fourth Amendment protections against unreasonable searches, urging a reevaluation of traditional financial surveillance laws like the Bank Secrecy Act and anti-money laundering regulations.

She expressed optimism that ongoing debates could lead to significant regulatory changes, noting that crypto networks offer a chance to balance transparency and privacy under U.S. financial law. Peirce's remarks signal that privacy and innovation will be central to future regulations as Congress advances digital asset legislation.