SEC’s Peirce Says Perpetual Futures, Prediction Markets Need Clear Rules

Hester Peirce, a commissioner at the US Securities and Exchange Commission, said new financial products need a clear regulatory framework.

Peirce told The Rollup that products such as tokenized securities, perpetual futures and prediction markets should be governed by clear rules rather than restricted outright or left under vague oversight, according to Odaily on June 20.

She added that regulators need to define standards for new products more clearly to balance innovation with investor protection.

Peirce also discussed the SEC’s innovation exemption program, a regulatory sandbox that would allow tokenized securities-related services to operate for a set period without being subject to some existing rules. She said the program would be run strictly and on a limited basis to support market innovation while maintaining investor protection.

She also identified self-custody and financial privacy as core principles for the future digital-asset regulatory framework. Those rights should be treated as fundamental in that framework and reflected in the design of future digital-asset rules, she said.