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CFTC chair calls for mass tokenization as SEC allows onchain stock trading
CFTC Chair Michael Selig said tokenization could enable near-instant settlement and real-time collateral movement, even as the CLARITY Act failed to advance.
Cointelegraph reports that CFTC Chair Michael Selig said financial markets should prepare for “mass tokenization” as regulators continue advancing on blockchain and onchain market initiatives.
Speaking Tuesday at the US Treasury Market Conference, Selig argued tokenization of real-world assets could form a more efficient financial system, citing near-instant settlement and real-time collateral movement among clearinghouses, intermediaries, and users. He said the CFTC would pursue principles-based rules as tokenization and onchain finance evolve.
Cointelegraph added that Selig previously said in August the CFTC would move ahead with crypto rules under its existing authority if Congress did not pass the CLARITY Act, a bill the Senate failed to advance on Sept. 15. On Sept. 17, the CFTC submitted a regulatory action on crypto asset transactions and markets to the White House, and the filing remains in a “prerule” stage without details on planned regulations.
The SEC has also promoted tokenized markets, according to Cointelegraph. On Sept. 17, the SEC granted a temporary “Innovation Exemption” for tokenized US stock trading, allowing certain platforms to trade digital versions of US-listed stocks under specified conditions.