CFTC chair pushes tokenization as SEC opens door to onchain stocks

CFTC Chair Michael Selig said financial markets should ready themselves for widespread tokenization of real-world assets, arguing that digital tokens could underpin a more efficient system by enabling near-instant settlement and real-time collateral movement among clearinghouses, intermediaries and users. Speaking at the U.S. Treasury Market Conference, Selig compared the potential impact of tokenization to the shift from hand signals to electronic trading and said the CFTC plans to pursue principles-based regulation as onchain finance evolves. Selig reiterated the agency's willingness to act under its existing authority after the CLARITY Act failed to advance in the Senate on Sept. 15. Following that legislative setback, the CFTC submitted a regulatory action related to crypto asset transactions and markets to the White House for review on Sept. 17; the filing is described as being at a 'prerule' stage and did not disclose the specific contours of any forthcoming rules. Regulators at the Securities and Exchange Commission have also moved to accommodate onchain markets. Jamie Selway, director of the SEC's Division of Trading and Markets, told Bloomberg TV that tokenization and crypto have become politicized but argued they need not be, and said U.S. success in developing these markets should attract bipartisan backing. On Sept. 17 the SEC granted a temporary 'Innovation Exemption' to allow certain platforms to trade tokenized versions of U.S.-listed stocks under defined conditions. SEC Chair Paul Atkins has previously said an exemption mechanism could support onchain trading while longer-term regulatory frameworks are developed. Together, the CFTC and SEC actions indicate coordinated regulatory attention to onchain trading and tokenization as market participants and policymakers explore how blockchain-based models might be integrated with existing market structures.