CFTC's Selig Emphasizes the Need to Prepare for the Era of Large-Scale Tokenization in the U.S.

The U.S. Commodity Futures Trading Commission (CFTC) has stated that it must prepare for the era of "large-scale tokenization," where the adoption of blockchain and artificial intelligence (AI) becomes mainstream. CFTC Chairman Michael Selig emphasized on the 22nd at the U.S. Treasury Market Conference that innovation should not merely modernize existing markets but should also prepare for future markets. He explained that the U.S. market needs to be ready for large-scale tokenization, the introduction of blockchain and AI, on-chain finance, and a 24/7 trading environment. Selig projected that changes in the financial market over the next decade are likely to surpass those of the past several decades. He identified the tokenization of real-world assets (RWA) as a key technology that will transform the structure of financial markets, stating that utilizing blockchain and tokenized assets will enable asset settlement and collateral movement in nearly real-time. The CFTC plans to establish a principle-based regulatory framework to facilitate the large-scale use of new technologies like blockchain and AI. Additionally, it views stablecoins as a core infrastructure and has revised existing guidelines to include stablecoins issued by national trust banks as collateral usable in the derivatives market. The CFTC has stated that it will respond to the demand for continuous 24-hour trading but will not apply this uniformly across all markets.

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