Commodity Futures Trading Commission Chairman Michael Selig has urged U.S. financial markets to prepare for what he called “mass tokenization,” arguing that blockchain based infrastructure could reshape trading, settlement and collateral management across traditional markets.
Speaking on Sept. 22 at the 2026 U.S. Treasury Market Conference hosted by the Federal Reserve Bank of New York, Selig said tokenization, on-chain finance and 24/7 trading could bring more change to financial markets over the next decade than the previous several decades combined. The comments come as U.S. regulators expand their work on digital assets, tokenized securities, stablecoins and continuous trading.
KEY TAKEAWAYS
- CFTC Chair Michael Selig said markets need to prepare for large scale tokenization.
- He linked tokenized assets to faster settlement and real-time collateral movement.
- The CFTC is developing a framework for 24/7 trading but does not plan to apply the same approach to every asset class.
- Stablecoins are already being incorporated into parts of the CFTC’s collateral framework.
- Selig’s remarks point to regulatory preparation rather than a new mandate requiring financial markets to tokenize assets.
TOKENIZATION COULD CHANGE MARKET INFRASTRUCTURE
Selig presented tokenization as more than a new way to represent existing assets. He said blockchain infrastructure could allow assets and collateral to move between clearinghouses, intermediaries and end users in near real time. That could reduce some of the delays associated with traditional settlement systems and allow market participants to manage collateral continuously rather than within conventional banking and market hours.
“Tokenization can do the same for all asset classes,” Selig said, comparing the potential impact of blockchain infrastructure with the earlier transition from manual trading to electronic markets.
The chairman also stressed that the CFTC intends to establish rules that allow digital technologies to develop while preserving market integrity. That distinction matters. Selig was describing the direction in which markets and regulation may move, not announcing a requirement for commodities or derivatives markets to tokenize their assets.
24/7 TRADING WILL NOT APPLY EVERYWHERE
Round the clock trading is another part of the CFTC’s preparations. The agency issued an advisory in May addressing 24/7 trading, clearing and settlement. It said derivatives tied to crypto assets could be well suited to continuous markets because of their digital infrastructure and global trading activity. Agricultural derivatives may be less suitable because of their regional characteristics and specialized trading and hedging practices.
Selig reiterated that position during his Treasury Market Conference remarks. He said crypto and precious metals may currently be appropriate for 24/7 trading, while agriculture, energy and certain financial products may require a different approach. The CFTC is therefore examining the operational requirements that would come with continuous markets, including surveillance, margin systems and other safeguards that must function without interruption. The agency has also sought public input on which asset classes are suitable for extended trading hours.
STABLECOINS MOVE DEEPER INTO DERIVATIVES MARKETS
Stablecoins are another part of Selig’s vision for a more digitally native financial system. In February, CFTC staff revised a no action position covering futures commission merchants that accept certain non security digital assets as customer margin collateral. The revision clarified that payment stablecoins issued by national trust banks can qualify under the framework, subject to its conditions.
Selig said the CFTC intends to explore additional ways for market participants, exchanges and clearinghouses to use stablecoins responsibly. That could give stablecoins a role beyond payments and crypto trading. If their use as collateral expands, they could become part of the infrastructure supporting regulated derivatives markets.
THE SEC IS MOVING ALONG A PARALLEL PATH
The CFTC’s comments arrive as the Securities and Exchange Commission also takes steps toward on-chain financial markets. The two agencies have separate mandates, but both have recently addressed how existing U.S. market structures can accommodate blockchain based products. The CFTC is focusing on derivatives, collateral and market operations, while the SEC has been addressing tokenized securities.
The Sept. 22 Treasury Market Conference itself reflected that broader shift. Its agenda included discussions on digital innovation, stablecoins, tokenized deposits and short-term funding, alongside traditional issues such as electronic trading and central clearing. For regulators, the challenge is no longer limited to determining whether digital assets belong within existing markets. It increasingly involves determining how existing safeguards should function when markets operate continuously and assets can move through blockchain infrastructure.
CONCLUSION
Selig’s remarks put tokenization, stablecoins and 24/7 trading within the same broader discussion about the future structure of U.S. financial markets. The CFTC is already taking incremental steps through its digital collateral framework and guidance on continuous trading. But the agency is also signaling that different products may require different regulatory treatment.
For crypto markets, the significance is that technologies developed around digital assets are increasingly being considered alongside the infrastructure of traditional derivatives markets. Whether mass tokenization develops at the scale Selig anticipates will depend on technology, market adoption and how regulators address the risks surrounding continuous trading, collateral, clearing and market surveillance.
