SEC’s Jamie Selway advocates bipartisan support for tokenization and crypto

Jamie Selway, Director of the SEC’s Division of Trading and Markets, is making a case that tokenization and crypto shouldn’t be a partisan football. His argument: modernizing markets through digital assets is something both sides of the aisle should want, and the SEC is building a framework to make it happen.

The pitch centers on a principle Selway has been championing since at least January 2026: “innovation without arbitrage.” Translation: if you put a stock on a blockchain, it’s still a stock, and the same rules apply. No special advantages for tokenized assets, but no extra penalties either.

The innovation exemption changes the game

On September 17, 2026, the SEC put teeth behind Selway’s vision by issuing what it calls an “Innovation Exemption.” The move provides temporary relief for venues that want to trade tokenized NMS stocks, which are the bread-and-butter equities listed on major US exchanges.

Under this exemption, these venues can operate without full exchange registration for five years. Perhaps more notable is what the exemption actually allows: AMM-style liquidity pools for tokenized stocks.

Why bipartisan matters here

Selway’s call for bipartisan support isn’t just rhetoric. It’s strategic. Digital asset legislation has stalled in the Senate, and without Congressional action, the SEC is essentially writing the rules on its own through exemptions and guidance.

Nasdaq and the NYSE have both signaled intentions to develop platforms for trading tokenized securities.

Regulatory coordination and round-the-clock markets

Selway has been pushing for better coordination between the SEC and the CFTC, particularly around swap reporting and portfolio margining.

Selway has also connected his tokenization framework to the broader discussion about extending equity market trading beyond the current 9:30 AM to 4:00 PM Eastern window. Blockchain rails are inherently 24/7, and AMM-style pools could help with liquidity provision during off-peak hours, when traditional market makers are typically less active.

The five-year window on the Innovation Exemption is worth watching closely. It’s long enough for real businesses to be built but short enough to create urgency around permanent legislation.

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