CFTC Chair Michael Selig stated that financial markets should prepare for mass tokenization. He noted that tokenizing real-world assets could create a more efficient system by enabling near-instant settlement and real-time collateral movement between market participants.
The CFTC plans to apply principles-based rules as onchain finance evolves. This follows the failure of the Senate to advance the CLARITY Act on September 15. On September 17, the commission submitted a regulatory action regarding crypto asset transactions for White House review, which remains in the prerule stage.
The SEC is also advancing tokenized markets. On September 17, the commission granted a temporary Innovation Exemption allowing specific platforms to trade digital versions of US-listed stocks. SEC Chair Paul Atkins previously indicated that this exemption serves as a bridge while regulators develop long-term rules.
