Jamie Selway, Director of the SEC’s Division of Trading and Markets, is advocating for a bipartisan approach to the regulation of tokenized assets and cryptocurrencies. He emphasizes the principle of innovation without arbitrage, meaning tokenized securities should follow existing laws without special advantages or penalties.
On September 17, 2026, the SEC introduced an Innovation Exemption. This measure allows venues trading tokenized NMS stocks to operate without full exchange registration for a period of five years. The exemption specifically permits the use of AMM-style liquidity pools for these assets.
The initiative aims to address the limitations of current market hours, which run from 9:30 AM to 4:00 PM Eastern time. By utilizing blockchain technology, the SEC explores 24/7 trading capabilities to improve liquidity during off-peak hours when traditional market makers are less active.
Major exchanges, including Nasdaq and the NYSE, have expressed interest in developing platforms for tokenized securities. Meanwhile, Selway is pushing for increased coordination between the SEC and the CFTC regarding swap reporting and portfolio margining to streamline the regulatory environment.
