In remarks to the Security Traders Association of New York, the U.S. Securities & Exchange Commission’s Director of the Division of Trading and Markets set out the Division’s current focus on tokenized securities and the Commission’s ongoing review of Regulation NMS, while inviting industry input on both areas. The speaker noted the remarks reflected his official capacity but not necessarily the views of the Commission or its staff. On tokenized securities, the Division described nearly a year of discussions across issuance, execution, clearance and settlement, and custody, guided by an “innovation without arbitrage” approach intended to avoid advantaging new entrants or incumbents. The Division highlighted a no-action letter to DTC for a three-year pilot program to tokenize securities, a staff statement providing a taxonomy for tokenized securities, and a further staff statement on wallets and other user interfaces investors may use to interact with tokenized securities, alongside work on an “innovation exemption” recommendation to the Commission that would allow certain trading venues to trade tokenized securities. On Regulation NMS, the Division pointed to its review of Rule 611 following two roundtables held in 2025, noted that it has published MEMX’s request for exemptive relief from Rules 610 and 612, and flagged specific areas where comment would be valuable, including the level of any access fee cap, the scope for quoting in half-cent increments, and implementation timing in light of potential Rule 611 changes. Looking ahead, the Division indicated it may soon recommend seeking comment on potential changes to market data revenue allocation and on ways to modernize best execution obligations, and it encouraged additional feedback on both tokenized securities policy and the Reg NMS reform agenda.

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