CFTC chair pushes tokenization as SEC opens door to onchain stocks
Michael Selig said tokenization could reshape financial markets as the CFTC and SEC continue advancing onchain initiatives despite the CLARITY Act setback.
CFTC Chair Michael Selig has stated that tokenization could revolutionize financial markets as the CFTC and SEC continue to advance onchain initiatives, despite the setback caused by the CLARITY Act. During a speech at the US Treasury Market Conference, Selig said that tokenization of real-world assets (RWAs) could pave the way for a more efficient financial system, enabling near-instant settlement and real-time collateral movements.
He believes that tokenization can achieve the same advancements in asset classes as the transition from hand signals to electronic trading. The CFTC plans to implement principles-based rules as tokenization and onchain finance continue to evolve. In August, Selig mentioned that the CFTC would proceed with crypto regulations under its existing authority if the CLARITY Act was not passed.
On September 17, the CFTC submitted a regulatory action regarding crypto asset transactions and markets for White House review. Meanwhile, the SEC has also shown support for tokenized markets. SEC Division of Trading and Markets Director Jamie Selway stated that tokenization and crypto are not inherently politicized and should receive bipartisan support.
The SEC granted a temporary "Innovation Exemption" on September 17, allowing certain platforms to trade digital versions of US-listed stocks under specific conditions. SEC Chair Paul Atkins mentioned in February that the exemption could help facilitate onchain trading while regulators establish long-term rules.
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