SEC Drafting Rules for Tokenized Securities, Weighing Perpetual Futures

The U.S. Securities and Exchange Commission is developing a regulatory framework for the listing and trading of tokenized securities.

Wu Blockchain reported on June 5 that Jamie Selway, director of the SEC’s Division of Trading and Markets, said the agency is drafting rules for tokenized securities based on the principle of “innovation without arbitrage.”

He said the goal is to support innovation while preventing regulatory arbitrage. In practice, that means a product should not be subject to a different regulatory regime simply because it has been tokenized.

The SEC is also stepping up cooperation with the Commodity Futures Trading Commission. The two agencies are jointly reviewing the regulatory framework for derivatives and assessing the possible introduction of new financial products, including perpetual futures, the report said.

The SEC and CFTC are particularly focused on limiting excessive leverage exposure for retail investors and preventing regulatory blind spots, according to the report.

The remarks come as the market for tokenized real-world assets in the U.S. financial sector, including tokenized stocks and bonds, is growing rapidly. Major platforms such as Robinhood, Coinbase and Kraken are also seeking to expand their tokenized securities businesses.