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SEC’s Hester Peirce Calls for Financial Privacy as Tokenization Gains Momentum

SEC’s Hester Peirce Calls for Financial Privacy as Tokenization Gains Momentum

CryptonewslandCryptonewsland2025/10/17 14:06
By:by Wesley Munene
  • Tokenization is now a major priority for the SEC, reshaping market and asset management.
  • The ongoing government shutdown has delayed key decisions, including crypto ETF approvals.
  • Peirce stresses the importance of balancing financial privacy with regulatory frameworks.

U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce has stressed that tokenization has become a priority for the agency, underscoring how the tech is reshaping discussions around digital assets and market infrastructure. Speaking Thursday at the DC Privacy Summit, Peirce also emphasized the importance of protecting financial privacy amid growing concerns over government oversight.

Tokenization Becomes Central to SEC Agenda

Peirce stated that tokenization is now a “huge focus” for the SEC as more firms explore bringing traditional assets like stocks onchain. The technology, which converts real-world assets into digital tokens, has drawn attention from major market players. In September, Nasdaq submitted a filing with the SEC in search of an authorization to trade tokenized securities. That proposal is still pending since the federal government is currently under a continuous shutdown which has stalled most regulatory action.

The shutdown, now in its second week, has slowed several key decisions, including multiple crypto exchange-traded fund applications awaiting approval. “Pretty much nothing is getting done,” Peirce said when asked about the current status of those filings. Since the start of the current administration, the SEC has shifted its approach to digital assets. 

Under former Chair Gary Gensler, the agency moved to classify most cryptocurrencies as securities and pursued several enforcement actions. It has since expanded its focus through initiatives like the Crypto Task Force and “Project Crypto,” which aim to refine how digital assets are regulated and traded. Peirce confirmed that the agency continues to work with Congress as lawmakers prepare comprehensive legislation to govern the digital asset market.

Privacy Concerns Remain a Key Discussion

In her speech, Peirce touched upon financial privacy, which she has also been talking about in recent months. She called on the policymakers to honor the constitutional provisions of the Fourth Amendment that protect against unreasonable searches of the government. Neither do we, she said, want to exist in a world where the government knows of the dangers of too much state power.

As Peirce tried to convince, digital assets create a chance to rethink the old financial surveillance rules, such as the Bank Secrecy Act, anti-money laundering regulations, and the rule of know your customer. She said that crypto had brought much of this back up again, as the peer to peer nature of the technology is a challenge to the traditional compliance model.
Peirce also took optimism that the ongoing debate would lead to significant regulatory changes. She claimed that the distinctive feature of crypto networks is an opportunity to reevaluate the possibility of transparency and privacy existing under the U.S financial law. With Congress advancing the legislation of digital assets , the comments made by Peirce reveal that the issue of privacy and innovation will serve as the focal point of the further regulations.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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