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CFTC Chair Michael Selig said markets must prepare for “mass tokenization” as blockchain, artificial intelligence, onchain finance and 24/7 trading move toward the center of U.S. financial policy. Speaking Tuesday at a U.S. Treasury Market conference at the New York Fed, Selig said the next decade could bring more change to financial markets than the previous several decades combined.
Why it matters
Selig said regulators need to tailor existing markets for new technology while preserving the trust and competition that underpin U.S. markets. He said the Trump administration wants the U.S. to lead by embracing innovation, encouraging competition and right-sizing regulation.
The CFTC has already sought public comment and issued guidance on round-the-clock trading in energy derivatives markets. Its February decision to expand eligible collateral to include stablecoins issued by national trust banks also points to a broader role for digital assets in market infrastructure.
Market impact
The policy direction could bring tokenized assets, stablecoin settlement and continuous trading into more regulated venues. Selig said the CFTC will seek additional ways to encourage responsible stablecoin adoption by market participants, exchanges and clearinghouses.
The SEC has separately released an innovation exemption intended to support onchain trading of tokenized stock. Both agencies are advancing these initiatives while broader crypto legislation remains stalled in the Senate, leaving agency action as a key near-term driver of U.S. market structure.
Frequently asked questions
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What did CFTC Chair Michael Selig say about tokenization?
Selig said markets must prepare for “mass tokenization” and adapt existing financial markets to blockchain, artificial intelligence and onchain finance.
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How is the CFTC approaching 24/7 trading?
The CFTC has issued guidance and sought public comments on round-the-clock trading in energy derivatives markets.
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What role could stablecoins play in market infrastructure?
The CFTC expanded eligible collateral in February to include stablecoins issued by national trust banks and is seeking responsible adoption by market participants, exchanges and clearinghouses.
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What did the SEC do for tokenized stocks?
The SEC released an innovation exemption intended to support the onchain trading of tokenized stock.
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Why are agency actions important for U.S. crypto markets?
Broader crypto legislation has stalled in the Senate, making CFTC and SEC initiatives a key near-term driver of U.S. market structure.
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