US Markets Prepare for Mass Tokenization: Selig Predicts Major Changes
CFTC Chair Michael Selig predicts that US financial markets will undergo significant changes in the next decade due to advancements in technology. In a recent speech at the U.S. Treasury Market conference, Selig emphasized the need for regulators to prepare for 'mass tokenization', which involves turning assets such as stocks or bonds into digital tokens on a blockchain.
Selig also mentioned other key factors that will drive change in financial markets over the next decade, including on-chain finance and 24/7 trading. The CFTC has already taken steps to support these developments by issuing guidance on 24/7 trading for energy derivatives markets and expanding its list of eligible collateral to include stablecoins issued by national trust banks.
The SEC has also been active in this space, releasing an 'innovation exemption' last week that allows for on-chain trading of tokenized stocks. Selig stated that the CFTC will continue to encourage responsible adoption of stablecoins and promote innovation in financial markets.