CFTC Chief Says Markets Must Ready for 'Mass Tokenization'

Crypto Regulation News

Commodity Futures Trading Commission Chairman Michael Selig says US regulators need to prepare markets for what he called "mass tokenization." He made the remarks while discussing how the agency plans to adapt existing rules for new technology such as blockchain and artificial intelligence.

Selig delivered the comments on Sept. 22 during a keynote speech at the US Treasury Market Conference, hosted by the Federal Reserve Bank of New York. "With developments like tokenization, on-chain finance, and 24/7 trading, the next decade will likely bring more change to financial markets than the previous several decades combined," Selig

in his prepared remarks.

Selig said the United States would continue to lead the world in these markets. He credited the Trump administration's approach to digital assets for helping keep the country ahead.

"Across the entire Trump Administration, we've already laid the groundwork to continue doing so by embracing innovation, encouraging competition, right-sizing regulation, and maintaining the trust that has made our markets the gold standard across the globe," he added.

Over the past year, the CFTC has issued guidance on the subject and asked the public for comment on extending 24/7 trading to energy derivatives markets. Selig pointed to this work as a sign of the agency's growing interest in markets that operate around the clock.