SEC Commissioner Hester Peirce Discusses Perpetual Contracts and Prediction Market Regulation: Emphasizes Self-Custody and Financial Privacy Principles

Odaily reported that U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce shared her views on perpetual contracts, prediction markets, and the future of digital asset regulation, striking a generally positive and open tone. Peirce reflected on the Rule 611 transaction transparency proposal, which has been in the works for about 20 years, and noted that the so-called "innovation exemption" mechanism would be intentionally designed to be strict and limited in order to balance market innovation with investor protection.

Commissioner Peirce stated that new financial products such as tokenized securities, perpetual contracts, and prediction markets should be governed by a clearer regulatory framework, rather than simply being restricted or left under vague oversight. At the same time, she emphasized two core principles: self-custody and financial privacy should be established as fundamental rights within the future regulatory system and should be incorporated into the design of subsequent digital asset regulatory regimes.