SEC Trading and Markets Director Jamie Selway outlines a tokenized securities framework focused on “innovation without arbitrage.” The SEC and CFTC are coordinating on derivatives rules to pr
SEC Trading and Markets Director Jamie Selway outlined a new framework for tokenized securities listing and trading in New York on June 4, 2026. The plan follows the principle of “innovation without arbitrage,” as regulators coordinate with the CFTC on derivatives rules. The effort targets market structure modernization while limiting regulatory gaps and retail leverage risks.
Jamie Selway said the SEC is developing rules under Chairman Atkins’ direction. The framework aims to align treatment of tokenized and traditional securities under one structure.
Selway said the goal is to ensure no advantage for either new entrants or legacy market providers. He added that fairness in market structure remains central to the approach.
The Division of Trading and Markets is reviewing custody, issuance, and secondary trading rules. It is also preparing an “innovation exemption” concept for trading venues handling tokenized securities.
Meanwhile, the SEC and CFTC are jointly reviewing overlapping jurisdiction areas. The agencies are examining product definitions, portfolio margining, and swap reporting rules.
According to Selway, coordination also includes evaluation of perpetual futures and related derivatives. The focus remains on avoiding regulatory arbitrage across market structures.
Selway warned against excessive leverage reaching retail investors through new tokenized instruments. He also stressed clear separation between investing activity and gambling-style products.
The SEC previously approved Nasdaq PHLX for Bitcoin index options listing on May 22. Regulators view this as part of broader structured market development.
Market infrastructure players are already adjusting to the SEC direction. The DTCC announced limited production testing for tokenized securities through DTC services starting July 2026.
A broader rollout is scheduled for October 2026, according to the announcement. Meanwhile, Nasdaq and the NYSE are developing tokenized settlement and trading platforms.
Selway also said the SEC is working toward 23-hour, five-day equity trading by end-2026. The Division is reviewing Regulation NMS and audit systems for modernization.
He added that industry participants should avoid exploiting jurisdictional gaps. Instead, they should submit proposals through formal regulatory engagement channels.
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