Key Insights: CFTC news centered on Michael Selig’s call for broader market tokenization. Selig linked on-chain finance with tokenized collateral and 24/7 trading. Existing CFTC guidance alre
Commodity Futures Trading Commission Chair Michael Selig said U.S. markets should prepare for broader tokenization and continuous trading. The CFTC news came during Sept. 22 remarks at the U.S. Treasury Market Conference in New York. Selig argued that blockchain infrastructure could alter trading, settlement, and collateral management across regulated markets.
The comments mattered because the agency already oversees derivatives markets tied closely to Treasury financing and risk management. Selig linked tokenization with stablecoins, on-chain finance, automated trading, and round-the-clock market access. His remarks also placed those technologies within existing CFTC work on collateral rules and market-hour extensions. That combination brings traditional market plumbing closer to infrastructure already common across digital-asset venues. It also raises operational questions around surveillance, margin, and clearing.
Selig said the CFTC should prepare markets for what he called “mass tokenization.” He said regulators should adapt legacy frameworks so blockchain and artificial intelligence can operate at scale. The chairman also said market participants should prepare for on-chain finance and 24/7 markets.
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Selig described real-world asset tokenization as one of the most important developments facing financial markets. He said tokenized collateral could improve liquidity movement across clearinghouses, intermediaries, and end users. Blockchain-based assets could also support near-instant settlement, he added.
The New York Federal Reserve confirmed Selig delivered his remarks during its Sept. 22 Treasury Market Conference. The event followed sessions covering central clearing, electronic trading, stablecoins, tokenized deposits, and short-term funding.
The CFTC had already published staff guidance for firms considering continuous trading or clearing operations. A May 29 advisory covered designated contract markets, clearing organizations, swap venues, and futures commission merchants.
The advisory said extended operations would remain subject to the Commodity Exchange Act and existing CFTC regulations. Staff also recommended that firms discuss planned 24/7 operations with the agency before implementation.
Selig said the Commission would not apply one approach across every market. He identified crypto and precious metals as products potentially suited to continuous trading. Agricultural products, energy, and some financial contracts may require different treatment, he said.
That distinction limits how broadly Selig’s tokenization comments can be applied today. His speech described a policy direction, rather than a rule requiring markets to tokenize assets.
The CFTC had previously expanded its treatment of digital assets used as derivatives collateral. In March, agency staff issued frequently asked questions covering crypto assets and blockchain technologies for registered entities.
Those responses addressed earlier CFTC guidance covering tokenized collateral and digital assets accepted as margin. The agency had also revised its stablecoin framework in February.
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That revision allowed certain payment stablecoins issued by national trust banks to qualify under an existing no-action position. The position covered some non-securities digital assets accepted as customer margin collateral.
Selig connected that work with the Guiding and Establishing National Innovation for U.S. Stablecoins Act. President Donald Trump signed the GENIUS Act into law on July 18, 2025. The law established a federal framework governing payment stablecoins.
Senate records showed lawmakers passed the measure by 68 votes to 30 on June 17, 2025. The legislation later cleared the House before reaching the president.
Selig’s remarks came as the Securities and Exchange Commission also moved toward limited on-chain securities trading. On Sept. 17, the SEC approved a temporary conditional exemption for certain tokenized National Market System stocks.
SEC Commissioner Mark Uyeda said tokenization could affect issuance, trading, transfer, settlement, and ownership records. The exemption allowed limited trading of tokenized stocks through specified on-chain venues.
That development showed tokenization policy extending beyond crypto-native assets into regulated securities infrastructure. However, securities and derivatives remain governed through separate statutory and agency frameworks.
Selig said tokenization, on-chain finance, and 24/7 trading could reshape markets during the next decade. His next regulatory steps remain tied to existing CFTC processes, rather than a single tokenization mandate.
The agency’s next scheduled technology forum will focus on artificial intelligence and agentic finance on Oct. 28, 2026. The CFTC said the Frontier Forum series would examine technologies affecting U.S. financial markets and market structure.
This article is for informational purposes only and does not constitute legal, financial or investment advice. Regulatory statements and staff guidance may change as agencies adopt additional rules or interpretations.
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