US Commodity Futures Trading Commission chair Michael Selig says financial markets must prepare for “mass tokenization”, with real-world assets potentially moving and settling almost instantly on blockchain-based infrastructure.
Speaking at the U.S. Treasury Market Conference on 22 September, Selig said tokenized collateral could transfer in real time between clearinghouses, intermediaries and end users as regulators adapt existing rules for onchain finance, artificial intelligence and blockchain technology.
He compared the possible transformation with the shift from hand-signal trading to electronic markets. High-quality tokenized collateral, he said, could make liquidity more dynamic, while blockchain infrastructure could eventually support near-instant settlement.
Different assets may need different rules
Selig said tokenization could eventually affect multiple asset classes, but warned that a single approach would not suit every market.
Crypto and precious metals may already be appropriate for round-the-clock trading, while agricultural products, energy contracts and some financial products may not be ready for 24/7 markets. Any move towards continuous trading would require surveillance, margin systems and operational safeguards to operate without interruption.
The CFTC has sought public views on extending trading hours and has issued staff guidance on 24/7 trading, clearing and settlement.
The agency is also examining stablecoins. Earlier in 2026, it expanded eligible tokenized collateral to include certain payment stablecoins issued by national trust banks, while publishing guidance on regulated entities’ use of crypto assets and blockchain technology.
Selig said the CFTC would continue considering stablecoin applications for market participants, exchanges and clearinghouses. Its approach would remain principles-based while preserving its responsibilities for market integrity.
CFTC and SEC act after CLARITY Act setback
The regulatory work is continuing under existing powers after the Senate failed to advance the CLARITY Act on 15 September. A cloture vote was defeated 49-50, leaving the bill 11 votes short of the 60 needed to proceed.
The vote did not end negotiations. Seven Democratic senators who opposed cloture said discussions could continue, and talks resumed, although no further Senate vote has been scheduled.
On 17 September, the CFTC submitted its crypto market framework to the White House Office of Information and Regulatory Affairs. The filing, titled “Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets”, remains at the pre-rule stage and does not introduce new trading or registration requirements. Proposed regulatory text has not been published.
The agency had said in August that it was prepared to pursue digital asset rules even without the legislation, including possible requirements for leveraged or margined crypto transactions through regulated markets and regulatory pathways for developers creating onchain financial products.
Also on 17 September, the CFTC’s Market Participants Division issued a no-action position for qualifying passive software providers connecting users with registered derivatives exchanges, brokers and futures commission merchants. Staff will not recommend enforcement over certain failures to register as introducing brokers or associated persons if providers meet 10 specified conditions.
The Securities and Exchange Commission has separately granted a five-year conditional exemption for qualifying platforms trading tokenized US-listed stocks. Eligible venues may use permissioned automated market makers and liquidity pools for tokenized National Market System stocks.
Tokens must provide the same rights and privileges as the underlying shares; synthetic products offering only price exposure are excluded. Venues must notify companies and give them an opportunity to object when unaffiliated parties tokenize their shares. Smart contracts must be public and auditable, and trading must stop whenever the underlying stock is halted on its primary exchange.
The framework limits symbols and trading volumes, requires disclosures on venue operations and activity, and gives certain liquidity providers temporary relief from the Exchange Act’s dealer definition. It expires five years after publication while the SEC seeks views on permanent onchain securities rules.
SEC chair Paul Atkins called it an interim, permissioned framework. SEC commissioner Mark Uyeda said tokenization could reshape issuance, trading, transfer, settlement and ownership records, while Trading and Markets director Jamie Selway said US development of the technology should attract support across party lines.
