Woofun AI reports that U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce has outlined a constructive approach to regulating emerging digital asset classes, including perpetual contracts and prediction markets. Peirce criticized the ambiguity of current oversight, arguing that new financial products such as tokenized securities require clear regulatory frameworks rather than vague restrictions or blanket bans.

Reviewing the long-standing Rule 611 trading transparency proposal, Peirce noted that the 'innovation exemption' mechanism should remain strict and limited to effectively balance market innovation with investor protection.

Furthermore, she emphasized that self-custody and financial privacy must be recognized as fundamental rights within the future regulatory architecture for digital assets.