CFTC Readies Markets for 'Mass Tokenisation' as Blockchain Adoption Accelerates

CFTC Chairman Michael Selig is calling for US markets to prepare for 'mass tokenisation' as on-chain finance and 24/7 trading become more prevalent. Speaking at the U.S. Treasury Market Conference in New York, Selig stated that the next decade will see greater changes to financial markets than the previous several decades combined.

According to Selig, the Commission has been working to 'tailor legacy frameworks' so blockchains and artificial intelligence can be adopted on a larger scale. The CFTC expanded its list of eligible tokenised collateral in February to include certain payment stablecoins issued by national trust banks.

The Chairman emphasized that high-quality tokenised collateral has the potential to make liquidity more dynamic and markets more resilient. However, Selig noted that not all asset classes are suitable for 24/7 trading, citing agricultural products, energy, and certain financials as examples.