SEC develops tokenized securities framework, reviews swaps rules with CFTC

The SEC is developing a listing and trading framework for tokenized securities, with Trading and Markets Director Jamie Selway saying the effort is proceeding alongside broader coordination with the CFTC on digital-asset market structure. Speaking in New York on June 4, Selway said the SEC and CFTC had already signed a memorandum of understanding in March to help align regulation and are jointly reviewing rules that are unclear or incompatible, starting with swaps, security-based swap data reporting, portfolio margining, and product definitions. He said the agencies plan within months to seek industry views on the legal classification of perpetual futures, a key issue for crypto markets because the products trade widely offshore but face uncertain treatment under U.S. securities and derivatives law. Selway also warned against blurring the line between investing and gambling and against offering excessive leverage to unsophisticated investors.