CFTC Chairman Rostin Behnam stated that regulators must adapt financial markets to mass tokenization, specifically mentioning blockchain and artificial intelligence. Speaking at a conference at the Federal Reserve Bank of New York, he highlighted real-world assets as a key area for enabling near-instant settlements and real-time collateral movement.
Behnam noted that the next decade will likely bring more significant changes to financial markets than the previous several decades combined, driven by tokenization and 24/7 trading. However, he cautioned against a uniform approach to continuous trading, noting that while crypto assets and precious metals may be suitable, other sectors like energy and agriculture require further evaluation.
The agency has already taken steps to address these shifts. In May, the CFTC issued guidance for platforms and clearinghouses regarding the transition to 24/7 operations, and in June, it requested market feedback on continuous trading for standard futures and perpetual contracts on physical commodities.
The commission is also exploring ways to facilitate the responsible use of stablecoins by market participants and exchanges. Additionally, in September, the CFTC expanded relief for providers of passive trading software, allowing them to operate under certain conditions without registering as introducing brokers.
