CFTC Warns Markets Must Adapt to Tokenization and 24/7 Trading by Next Decade
U.S. financial markets must prepare for large-scale tokenization of assets and 24/7 trading within the next decade, according to Commodity Futures Trading Commission Chairman Michael Selig.
Selig spoke at the U.S. Treasury Market Conference at the Federal Reserve Bank of New York, highlighting developments in tokenization, blockchain, artificial intelligence, and continuous trading that could reshape financial markets over the next ten years.
The CFTC is already preparing for this shift by seeking public comment on extending certain derivatives markets to 24/7 trading and issuing guidance in May 2026 outlining regulatory considerations for continuous trading, clearing, and settlement.
Selig noted that tokenized real-world assets could enable near-instant settlement and real-time movement of collateral between clearinghouses, intermediaries, and end users. The CFTC has also expanded eligible collateral to include certain payment stablecoins issued by national trust banks and plans to explore further ways to support responsible stablecoin use.