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

Hester Peirce, a commissioner at the U.S. Securities and Exchange Commission, said emerging financial products need clearer rules.

In an interview with The Rollup cited by Odaily on June 20, Peirce said new products such as tokenized securities, perpetual futures and prediction markets should be governed by a clear regulatory framework rather than simply restricted or left under ambiguous oversight.

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

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

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