US Regulators Warn of Mass Tokenization for All Asset Classes

CFTC Chair Michael Selig warned that financial markets should prepare for 'mass tokenization,' where real-world assets settle almost instantly on blockchain-based infrastructure.

The US Commodity Futures Trading Commission is working to adapt existing rules for blockchain, artificial intelligence, and on-chain finance. This includes allowing tokenized collateral to move in real-time between clearinghouses, intermediaries, and users.

Selig noted that the transition from hand signals to electronic trading advanced the financial system, and he believes tokenization can do the same for all asset classes.