CFTC chair pushes tokenization as SEC opens door to onchain stocks
CFTC Chair Michael Selig said markets should prepare for “mass tokenization” as regulators update rules for blockchain, AI, and onchain finance. He argued that tokenized real-world assets could improve financial markets through near-instant settlement and real-time collateral movement across clearinghouses, intermediaries, and users. He said the CFTC will rely on principles-based rules as tokenization expands. Selig also said in August that the CFTC would use its existing authority to move forward on crypto rules if Congress failed to pass the CLARITY Act, which the Senate did not advance on Sept. 15. The CFTC later sent a crypto-related regulatory action to the White House for review. The SEC is also supporting tokenized markets. SEC trading and markets director Jamie Selway said tokenization and crypto should not be treated as inherently political, and SEC Chair Paul Atkins has backed temporary flexibility for onchain trading. On Sept. 17, the SEC granted a temporary “Innovation Exemption” for certain tokenized US stock trading platforms.
