CFTC Chief Sees US Markets Embracing Mass Tokenization Within a Decade
CFTC Chairman Michael Selig has emphasized the need for U.S. financial markets to adapt to widespread asset tokenization, blockchain-based finance, and continuous trading operations.
In a recent address at the U.S. Treasury Market Conference, Selig stated that emerging technologies like blockchain networks and artificial intelligence systems will bring more change to financial markets over the next decade than they have in multiple preceding decades combined.
The CFTC has initiated reviews of how current regulatory frameworks might require modification, including asset tokenization, which refers to creating digital representations of conventional assets on a blockchain network.
The agency is also exploring expanded stablecoin applications and has solicited public input regarding perpetual derivatives market operations. The SEC recently granted a provisional exemption permitting restricted blockchain-based trading of tokenized American equities.