CFTC Chair says tokenization could reach all asset classes

The Commodity Futures Trading Commission (CFTC) is actively preparing U.S. financial markets for what Chair Michael Selig described as “mass tokenization.” In remarks at the U.S. Treasury Market Conference, Selig outlined how tokenized assets could settle almost instantly on blockchain infrastructure and move in real time between clearinghouses, intermediaries and end users.

Adapting existing frameworks

The agency is working to adapt its existing derivatives rules to accommodate blockchain, artificial intelligence and on‑chain finance. This includes expanding the types of tokenized collateral that qualify under CFTC regulations, such as certain payment stablecoins issued by national trust banks.

24/7 trading and asset‑specific considerations

Selig noted that continuous, around‑the‑clock trading may be appropriate for some assets—such as crypto and precious metals—while other markets (e.g., agricultural, energy contracts) may not yet be ready. The CFTC has sought public feedback on expanding trading hours and issued guidance on 24/7 trading, clearing and settlement, emphasizing the need for surveillance, margin, and operational safeguards that function continuously.

Parallel regulatory actions

While the Senate failed to advance the CLARITY Act, the CFTC is proceeding under its existing authority. It recently submitted a draft crypto market framework to the White House Office of Information and Regulatory Affairs, outlining potential rules for leveraged crypto transactions and on‑chain financial products.

Separately, the Securities and Exchange Commission (SEC) granted a five‑year conditional exemption allowing qualified platforms to trade tokenized versions of U.S. listed stocks. The exemption requires that token holders receive the same rights as traditional shareholders and that smart contracts be public and auditable.

Future outlook

Selig likened the impact of tokenization to the shift from hand‑signal trading to electronic markets, suggesting it could transform liquidity and collateral management across all asset classes. The CFTC plans to continue evaluating stablecoin use and to apply principles‑based regulation as tokenization evolves.