CFTC Chair Selig says markets must prepare for mass tokenization

CFTC Chair Michael Selig said regulators must prepare markets for mass tokenization. He said regulators should adapt current markets for technologies such as blockchain and artificial intelligence. Selig said tokenization, onchain finance and 24/7 trading will likely bring more change to financial markets over the next decade than in the previous several decades combined. He said the U.S. will continue to lead. The CFTC has issued guidance on 24/7 trading for energy derivatives markets over the past year. The agency has also sought public comments on the issue. The CFTC expanded its eligible collateral list in February to include stablecoins issued by national trust banks. Selig said the CFTC will seek more ways to encourage responsible stablecoin adoption among market participants, exchanges and clearinghouses. The Securities and Exchange Commission released an innovation exemption last week for onchain trading of tokenized stock. A bill to regulate the crypto industry overall has stalled in the Senate.