CFTC Chief Calls For “Mass Tokenization” As SEC Advances Onchain Stock Trading

The head of the US Commodity Futures Trading Commission said financial markets need to prepare for widespread tokenization, as both major regulatory agencies continue advancing efforts to bring traditional assets onto blockchain networks despite recent legislative setbacks.

CFTC Chair Frames Tokenization As Market Evolution

Speaking Tuesday at a Treasury Market Conference, CFTC Chair Michael Selig argued that tokenizing real world assets could form the backbone of a more efficient financial system, enabling near-instant settlement and allowing collateral to move in real time between clearinghouses, intermediaries, and end users. He compared the shift to earlier moves from manual trading floors to electronic systems, saying tokenization could bring similar gains across every asset class. Selig indicated the agency would favor flexible, principles based rules rather than rigid frameworks as the technology matures.

Agency Presses Forward Without Congressional Action

This follows Selig’s comments in August that the CFTC would advance crypto regulations under its existing legal authority if lawmakers failed to pass the CLARITY Act. The Senate did not move the bill forward on September 15. Days later, on September 17, the CFTC submitted a regulatory proposal covering crypto transactions and markets to the White House for review, though the filing remains in early prerule stages without specific regulatory details.

SEC Officials Echo Support For Onchain Markets

Securities and Exchange Commission officials have separately encouraged tokenized market development. Jamie Selway, who directs the SEC’s Division of Trading and Markets, said in a television interview that tokenization and crypto have become unnecessarily politicized despite not being inherently partisan issues, arguing that American leadership in this space deserves support across party lines.

Temporary Exemption Already In Place

The SEC granted a temporary “Innovation Exemption” on September 17, allowing certain trading platforms to offer digital versions of US-listed stocks under specific conditions. SEC Chair Paul Atkins had suggested back in February that such exemptions could support onchain trading while permanent regulations are developed.