Key facts
- CFTC Chair Michael Selig believes tokenization can create a more efficient financial system.
- Selig stated the CFTC would pursue principles-based rules for tokenization and onchain finance.
- The SEC granted an "Innovation Exemption" for tokenized US stock trading.
- SEC Division of Trading and Markets Director Jamie Selway said tokenization is not inherently political.
- The CLARITY Act, intended to provide regulatory clarity for crypto, failed to advance in the Senate on September 15.
US financial regulators are pushing forward with initiatives to integrate blockchain technology into traditional markets, despite legislative setbacks. CFTC Chair Michael Selig expressed his belief that the tokenization of real-world assets could revolutionize financial markets by enabling near-instant settlement and real-time collateral movement. He compared the potential impact of tokenization to the advancement brought by the transition from hand signals to electronic trading, suggesting it could benefit all asset classes. Selig indicated that the CFTC would continue to develop rules based on principles as tokenization and onchain finance evolve, especially after the CLARITY Act failed to pass the Senate on September 15. The CFTC also submitted a crypto-related regulatory action for White House review on September 17, though details remain undisclosed.