CFTC Chair Advocates Mass Tokenization as SEC Advances Onchain Stocks

CFTC’s Vision of Mass Tokenization

Speaking at the US Treasury Market Conference, Michael Selig highlighted that tokenization of real-world assets (RWAs) could underpin a more efficient financial system. It would enable near-instant settlements and real-time collateral movements among clearinghouses, intermediaries, and users.

He compared the shift from hand signals to electronic trading with the forthcoming transformation tokenization can bring to all asset classes. The CFTC plans to craft principles-based regulations evolving alongside onchain finance and tokenization developments.

CFTC’s Actions in Crypto Regulation

In August, Selig stated that if Congress failed to pass the CLARITY Act, the CFTC would proceed with crypto regulations using existing authority. The Senate failed to advance the bill on September 15.

On September 17, the CFTC submitted a regulatory proposal concerning crypto asset transactions and markets for White House review. The filing remains in a ‘prerule’ stage with no detailed regulatory text disclosed yet.

SEC’s Push for Onchain Tokenized Markets

Alongside the CFTC, the SEC has promoted the development of tokenized markets. In a Bloomberg interview, Jamie Selway, Director of the SEC’s Division of Trading and Markets, said that although crypto and tokenization have become politicized, they should not be inherently political.

On September 17, the SEC granted a temporary “Innovation Exemption” that allows certain platforms to trade digital representations of US-listed stocks under specified conditions.

SEC Chair Paul Atkins had previously indicated in February that such exemptions could facilitate onchain trading while regulators develop comprehensive long-term rules.