SEC Commissioner Hester Peirce has called on companies exploring asset tokenization and innovative trading products to engage directly with the SEC. In an interview with CNBC, Peirce emphasized the importance of communication between the industry and regulators as the market for tokenized financial instruments matures. She encouraged firms to discuss their plans with the SEC to ensure compliance and to test market demand for new products. Peirce highlighted that many asset management firms are considering integrating crypto assets into traditional investment vehicles like ETFs. She also addressed the SEC's scrutiny of highly leveraged ETFs, clarifying that the SEC's role is to ensure compliance and risk disclosure, not to judge investment value. While existing regulations limit fund leverage, Peirce noted that issuers could propose alternative structures if they meet legal requirements.