TechFlame News - U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce stated that the regulatory body is open to companies exploring asset tokenization and new exchange-traded product structures, and encourages relevant institutions to proactively communicate with the SEC.

In an interview with CNBC's program "The Exchange," Peirce noted that as the market gradually matures, the SEC hopes institutions developing innovative financial products—including those launching tokenized financial instruments—will engage directly with regulators. "The most important thing is 'come talk to us about what you want to do.' We want to work with the industry to give the market a chance to test whether there is genuine demand for these new products."

She pointed out that many asset management firms are currently exploring ways to package crypto assets or blockchain-based securities into traditional investment vehicles, such as exchange-traded funds (ETFs).

Peirce also addressed the SEC's recent focus on high-leverage ETFs. She emphasized that the SEC is not a "value-judging regulator" and does not determine whether a product is a good investment. Instead, its role is to ensure compliance with relevant legal requirements and full disclosure of risks.

She explained that existing regulations impose certain limits on fund leverage levels. However, if issuers can demonstrate that a product's structure fits within the securities law framework, they may still propose different design approaches. Currently, as some institutions attempt to launch ETF products with leverage exceeding three times, regulatory attention in this area is increasing.