CFTC, SEC Advance Tokenization After CLARITY Act Setback
CFTC and SEC officials are using existing authority to test tokenized trading, with the SEC granting temporary relief for digital versions of U.S. stocks.
- On Tuesday, Commodity Futures Trading Commission Chair Michael Selig stated financial markets must prepare for "mass tokenization," arguing that adapting frameworks for blockchain and artificial intelligence will modernize clearinghouses and collateral movement.
- While Congress continues debating the CLARITY Act, the CFTC submitted a regulatory framework covering crypto assets to the White House on September 17, which remains at the "prerule" stage.
- The Securities and Exchange Commission recently granted Tokenized Securities Venues a temporary "Innovation Exemption," allowing platforms to experiment with permissioned automated market makers while maintaining existing federal securities laws.
- Evaluating 24/7 trading models, regulators are considering specific asset classes like crypto and precious metals, while Selig noted the agency expanded eligible tokenized collateral to include certain payment stablecoins issued by national trust banks.
- SEC Division of Trading and Markets Director Jamie Selway noted that tokenization is "not naturally a politicized function," emphasizing the technology's neutrality; agencies plan to rely on principles-based regulation to support blockchain integration.
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16 Articles
CFTC chair says tokenization could reach all asset classes
The US Commodity Futures Trading Commission has begun preparing financial markets for what Chair Michael Selig called “mass tokenization,” as the agency works to adapt existing rules for blockchain, artificial intelligence and onchain finance. CFTC Chair Michael Selig said during…
CFTC Prepares for “Mass Tokenization” as 24/7 Markets Move Closer
Why Is the CFTC Preparing for “Mass Tokenization”? U.S. derivatives regulators are preparing for a financial system in which tokenized assets, onchain settlement and round-the-clock trading become part of mainstream market infrastructure rather than products confined largely to crypto. Commodity Futures Trading Commission Chair Michael Selig said regulators need to ready markets for “mass tokenization” while adapting existing frameworks so block…
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