Jamie Selway, Director of the SEC's Division of Trading and Markets, outlined Thursday a coordinated regulatory framework with the CFTC for digital assets. Speaking at the Piper Sandler Global Exchange & Fintech Conference in New York, Selway described the gradual alignment of SEC and CFTC approaches around digital assets, derivatives, tokenization, and extended-hours trading. The speech addressed growing pressure on regulators to define jurisdictional boundaries across crypto products that increasingly blur the lines between securities, swaps, prediction markets, and futures, following years of regulatory fragmentation, lawsuits, and jurisdictional disputes between federal agencies.
SEC And CFTC Develop Joint Framework For Tokenized Securities And Digital Assets
Selway stated the SEC is working with the CFTC on a framework for tokenized securities under SEC Chairman Paul Atkins' leadership, with "innovation without arbitrage" serving as the guiding principle. The speech confirmed regulators are evaluating ways to harmonize SEC and CFTC policies in areas where rulebooks overlap or conflict.
"Firms should not be shuffled back and forth between regulators when a product touches elements of both regulatory frameworks," Selway said, citing remarks previously delivered by Atkins at the FIA Global Cleared Markets Conference in March.
The SEC director identified several areas already under review, including swap and security-based swap reporting, portfolio margining, and product definitions. He confirmed the agencies are jointly evaluating novel financial products, including CME Group's application to trade single-stock futures with cash-settled PM settlement and Nasdaq PHLX's recently approved cash-settled Bitcoin index options.
Selway confirmed the SEC is working to facilitate a transition toward 23-by-5 equity trading by the end of this year while also reviewing legacy rules such as Regulation NMS and the Consolidated Audit Trail. CME Group recently launched 24/7 crypto futures trading, while brokerages including Robinhood and Interactive Brokers expanded overnight trading access in US equities.
Regulators Debate Classification Of Perpetual Futures Contracts
Selway placed attention on perpetual futures, acknowledging regulators remain divided on how these products should be classified. "Perps are popular outside our regulatory perimeter, particularly for digital assets," Selway said.
According to CCData, perpetual futures represented more than 70 percent of centralized crypto derivatives trading volume globally during several months of 2025. The SEC official referenced a joint SEC-CFTC roundtable held last September where industry participants debated whether perpetuals should be treated as futures contracts or swaps.
Don Wilson of DRW argued perpetuals fit within futures regulation, while Cboe Global Markets CEO Craig Donahue suggested swaps treatment may be more appropriate under current law. The debate intensified after the CFTC approved Kalshi's proposal to list perpetual Bitcoin futures contracts in May. The CFTC simultaneously stated additional perpetual contracts tied to other underlying assets would face case-by-case review.
Offshore exchanges including Binance, Bybit, and OKX built significant portions of their derivatives businesses around perpetual contracts unavailable in regulated US markets.
SEC Prepares Framework For Tokenized Securities Infrastructure
Selway stated the SEC is working on a framework allowing tokenized securities to list and trade inside regulated markets. Firms including BlackRock, Franklin Templeton, Robinhood, Coinbase, Kraken, and several major exchanges are exploring tokenized stocks, funds, and real-world assets.
Boston Consulting Group and Ripple estimated in a joint report that the tokenized asset market could reach $18.9 trillion by 2033, while McKinsey estimated tokenization could become a multi-trillion-dollar market across funds, bonds, collateral, and alternative assets.
Selway warned regulators would continue focusing on leverage and speculative behavior. "We must distinguish investing from gambling," he said. The SEC official also warned against "extending unhealthy levels of leverage to the unsophisticated and unsuspecting."
FAQ
What did Jamie Selway announce at the Piper Sandler conference on Thursday?
Jamie Selway, Director of the SEC's Division of Trading and Markets, outlined a coordinated regulatory framework with the CFTC for tokenized securities, perpetual futures, and digital asset trading infrastructure. He stated the SEC is working with the CFTC under Chairman Paul Atkins' leadership with "innovation without arbitrage" as the guiding principle, and confirmed the agencies are jointly evaluating novel financial products including CME Group's single-stock futures application and Nasdaq PHLX's cash-settled Bitcoin index options.
How did regulators debate the classification of perpetual futures contracts?
At a joint SEC-CFTC roundtable held last September, Don Wilson of DRW argued perpetuals fit within futures regulation, while Cboe Global Markets CEO Craig Donahue suggested swaps treatment may be more appropriate under current law. The CFTC approved Kalshi's proposal to list perpetual Bitcoin futures contracts in May, and stated additional perpetual contracts tied to other underlying assets would face case-by-case review.
What did Boston Consulting Group and Ripple estimate about the tokenized asset market?
Boston Consulting Group and Ripple estimated in a joint report that the tokenized asset market could reach $18.9 trillion by 2033, while McKinsey estimated tokenization could become a multi-trillion-dollar market across funds, bonds, collateral, and alternative assets.
