SEC's Jamie Selway Advocates for Bipartisan Support in Tokenization Framework

Jamie Selway, the Director of the SEC’s Division of Trading and Markets, is advocating for bipartisan support to modernize markets through tokenization and digital assets. He argues that both political parties should unite in their efforts to enhance market innovation without creating unfair advantages or penalties for tokenized assets.

On September 17, 2026, the SEC introduced an “Innovation Exemption,” which allows venues to trade tokenized National Market System (NMS) stocks without full exchange registration for a period of five years. This exemption is significant as it enables Automated Market Maker (AMM)-style liquidity pools for tokenized stocks, potentially transforming how these assets are traded.

Selway’s push for bipartisan support is crucial, especially as digital asset legislation has faced delays in the Senate. Without Congressional action, the SEC is effectively shaping the regulatory landscape through exemptions and guidance. Major exchanges like Nasdaq and the NYSE are already exploring platforms for trading tokenized securities.

Additionally, Selway is advocating for improved coordination between the SEC and the CFTC, particularly regarding swap reporting and portfolio margining. He also connects the tokenization framework to discussions about extending trading hours for equity markets, leveraging the 24/7 nature of blockchain technology to enhance liquidity during off-peak hours.

The five-year duration of the Innovation Exemption is a critical period for businesses to develop around this framework, but it also creates urgency for permanent legislative solutions.