CFTC Chair Selig Urges Markets to Prepare for Mass Tokenization
He said tokenized assets could enable near-instant settlement and real-time collateral movement, while trading hours and rules should vary by asset class.
CFTC Chairman Michael S. Selig urged U.S. markets to prepare for mass tokenization, saying blockchain-based assets could speed settlement and improve collateral movement across the financial system.
“Tokenization can do the same for all asset classes,” Selig said in remarks Sept. 22 at the 2026 U.S. Treasury Market Conference. His comments were his own and did not necessarily represent the full commission.
Selig said putting real-world assets on blockchains could make liquidity more responsive and strengthen market resilience. He called for clear, principles-based rules that allow blockchain technology and artificial intelligence to expand while preserving market integrity.
He also said tokenization is tied to the development of on-chain finance and continuous trading. Crypto and precious metals may currently be suitable for 24/7 markets, while agricultural products, energy and certain financial assets may require different treatment.
The CFTC has expanded eligible tokenized collateral to include certain payment stablecoins issued by national trust banks. The agency updated its crypto and blockchain FAQs on Sept. 24 to address tokenized permitted investments and blockchain-based recordkeeping.
Selig said tokenization, on-chain finance and 24/7 trading could bring more change to financial markets over the next decade than the previous several decades combined.
Riza Dagoc
Riza Dagoc reports on regulation, investing and the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.