Jamie Selway, Director of the SEC's Division of Trading and Markets, unveiled 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," aiming to align treatment of tokenized and traditional securities under a single structure.
Core Principle: Innovation Without Arbitrage
Selway emphasized the framework is being developed under Chairman Atkins' direction. The goal is to ensure no advantage for either new entrants or legacy market providers. Fairness in market structure remains central. The Division is reviewing custody, issuance, and secondary trading rules, and preparing an "innovation exemption" concept for trading venues handling tokenized securities.
Coordinating Derivatives Rules with CFTC
The SEC and the Commodity Futures Trading Commission (CFTC) are jointly reviewing overlapping jurisdiction areas. They are examining product definitions, portfolio margining, and swap reporting. Selway noted that coordination also includes evaluation of perpetual futures and related derivatives, with a focus on avoiding regulatory arbitrage across market structures. He warned against excessive leverage reaching retail investors through new tokenized instruments and stressed clear separation between investing activity and gambling-style products.
Market Infrastructure Gears Up
Infrastructure firms are already adjusting. The Depository Trust & Clearing Corporation (DTCC) announced limited production testing for tokenized securities through DTC services starting July 2026, with a broader rollout in October 2026. Meanwhile, Nasdaq and the New York Stock Exchange are developing tokenized settlement and trading platforms.
Timeline and 23-Hour Trading Vision
Selway also said the SEC is working toward 23-hour, five-day equity trading by end of 2026. The Division is reviewing Regulation NMS and audit systems for modernization. Earlier, on May 22, the SEC approved Nasdaq PHLX for Bitcoin index options listing, viewed as part of broader structured market development.
Selway urged industry participants to avoid exploiting jurisdictional gaps and instead submit proposals through formal regulatory engagement channels. The framework aims to harness tokenization while preserving market integrity and protecting investors, setting the stage for widespread adoption in 2026.